ICICI Mutual fund simplified

1 | P a g e
SUMMER INTERNSHIP PROJECT REPORT
ON
“MUTUAL FUND SIMPLIFIED”
CUSTOMER AWARENESS
CARRIED ON AT
SUBMITTED TO
ASIA PACIFIC INSTITUTE OF MANAGEMENT, NEW DELHI
IN PARTIAL FULLFILMENT OF THE REQUIREMENTS FOR THE AWARD OF
POST GRADUATE DIPLOMA IN MANAGEMENT
UNDER THE GUIDANCE OF
(PROF. DEVENDRA BHAHADUR)
(OMDS FACULTY)
SUBMITTED BY:
(AMIT KUMAR JHA)
(2K14G010)
PGDM BATCH 2014-2016

2 | P a g e
DECLARATION
I, AMIT KUMAR JHA, hereby declare that the project work entitled “MUTUAL FUND
SIMPLIFIED” Submitted towards partial fulfillment of requirements for the award of Post
Graduate Diploma in Management is my original work and the dissertation has not formed the
basis for award of any degree, associate ship, fellowship or any similar title to the best of my
knowledge.
Place: NEW DELHI (Signature of Student)
Date: (AMIT KUMAR JHA)
Roll No: 2K14G010

3 | P a g e
ACKNOWLEDGEMENT
It is my proud privilege to release the feelings of my gratitude to several persons who helped me
directly or indirectly to conduct this project work. I express my heart full in debt and owe a deep
sense of gratitude to my teacher and my faculty guide Prof. DEVENDRA BAHADUR, Asia
Pacific Institute of Management and Mr. ANUJ AGARWAL, Training Manager, ICICI
SECURITIES, 17,18,19, 2nd Floor, Kailash Enclave New Delhi, for their sincere guidance and
inspiration in completing this project.
I am extremely thankful to faculty members of the Asia Pacific Institute of Management for their
coordination and cooperation and thankful to Prof. DEVENDRA BAHADUR for his kind
guidance and encouragement.
I am also extremely thankful to all those persons who have positively helped me and ICICI
Securities customers who responded my questionnaire, around whom the whole project cycle
revolves.
I also thank all my friends who have more or less contributed to the preparation of this project
report. I will be always indebted to them.
Thanking you

4 | P a g e
CERTIFICATE
This is to certify that Mr. Amit Kumar Jha , Roll number 2K14G010, a student of PGDM in Asia
Pacific Institute of Management, New Delhi, has carried out the Summer Internship Project work
presented in this report titled “MUTUAL FUND SIMPLIFIED’ for the award of Post Graduate
Diploma in Management for the Academic Batch 2014-16, under my guidance.
(Signature)
Prof. Devendra Bahadur
Date:

5 | P a g e
PREFACE
In our two years diploma program of POST GRADUTE DIPLOMA IN MANAGEMENT of there
is provision for doing summer internship after III semester. The essential purpose of this project is
to given an exposure and detailed outlook to the student of the practical concepts, which they
already studied research. For this purpose, I was assigned the project for the “MUTUAL FUND
SIMPLIFIED” in ICICI SECURITIES by my project mentor. It is a matter of great privilege to get
training from ICICI SECURITIES, one of the largest organizations of its kind.
The project lasted for a period of eight weeks; it was informative, interesting, inspiring and
challenging task.
I hope this report will provide an experiment outlook to the dynamic functioning in the MUTUAL
FUND department in securities sector.

6 | P a g e
CONTENT
S.No TOPICS Page No.
I CHAPTER- I
1.1 Company profile 10
1.2 Introduction 10
1.3 Overview 11
1.4 Brief about ICICI group 12
1.5 History of ICICI group 12-19
1.6 ICICI group companies 20
1.7 Board of directors 20
1.8 Vision and mission of ICICI group 21
1.9 Privacy Policy 21
1.10 Introduction to ICICI direct 22
1.11 Awards and Accolades 23
1.12 Major Competitors 24
1.13 ICICI direct trading platforms 24
1.14 Products and service offered by ICICI direct 25-34
1.15 How is Mutual Fund set up? 35
1.16 Advantages and Disadvantages of Mutual Fund 35-37
1.17 Different types of Mutual Fund 38-40
II CHAPTER-II
2.1 Literature Review 42-46

7 | P a g e
S. No TOPICS Page No.
III CHAPTER-III
3.1 Research Methodology 48
3.2 Problem of the Study 48
3.3 Objective of the Study 48
3.4 Scope of the Study 48
3.5 Sampling Framework 49
3.6 Data Collection 49
3.7 Data Analysis 49
3.8 Data Interpretation 49
3.9 Limitation of the Study 49
3.10 Responsibilities assigned by the Company Mentor 50
3.11 Sampling Technique 50
3.12 Statistical Tool used for Analysis 50
IV CHAPTER-IV
4.1 Data Analysis and Interpretation 52-61
V CHAPTER-V
5.1 Summary of Findings 63
5.2 Suggestions and Recommendations 64
5.3 Conclusion 65
VI APPENDIX
6.1 Bibliography 66-67
6.2 Sample Questionnaire 68-70

8 | P a g e
LIST OF TABLES
S. No TOPICS Page No.
I Reasons of customers for not investing in MF through ICICI Direct.com 56
II Responses of customers who have done online transactions in the past 57
III How regularly the customers used to transact online. 58
IV How do the customers check performance of all/any of their investment? 60
LIST OF FIGURES
S.No TOPICS Page No.
I No. of customers invested in securities in the last 12 months. 53
II Preferred mode of investment. 54
III Responses of customers about awareness that they can invest in MF through
ICICI direct.com.
55
IV Reasons of customers for not investing in MF through ICICI direct.com. 56
V Responses of customers who have done online transactions in the past. 57
VI How regularly the customers used to transact online. 58
VII Medium of news information and analysis do customers used to update
themselves on investment products.
59
VIII How does the customers check performance of all/any of their investment? 60
IX Responses of customers about switching their investment relationship to ICICI
Direct.com.
61
X Responses of customers about the site features they found useful at ICICI
direct.com.
62

10 | P a g e
COMPANY PROFILE
Company Name ICICI Securities
Founded In 1995
Parent Company ICICI Limited
Headquarter Mumbai
Chairperson Mrs. Chanda D. Kochhar
Managing Director Mr. Anup Bagchi
Website www.icicisecurities.com
INTRODUCTION
ICICI Securities Limited provides various investment banking products and services to corporates,
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. The company also offers mergers and acquisitions advisory services; and private equity
advisory.

11 | P a g e
OVERVIEW
ICICI Securities Ltd is an integrated securities firm offering a wide range of services including
investment banking, institutional broking, retail broking, private wealth management, and financial
product distribution. ICICI Securities sees its role as 'Creating Informed Access to the Wealth of
the Nation' for its diversified set of client that includes corporates, financial institutions, high net-
worth individuals, and retail investors. Headquartered in Mumbai, ICICI Securities operates out of
66 cities and towns in India and global offices in Singapore and New York. ICICI Securities Inc.,
the step-down wholly owned US subsidiary of the company is a member of the Financial Industry
Regulatory Authority (FINRA) / Securities Investors Protection Corporation (SIPC). ICICI
Securities Inc. activities include Dealing in Securities and Corporate Advisory Services in the
United States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore
(MAS) and operates a branch office in Singapore.

12 | P a g e
BRIEF ABOUT ICICI GROUP
The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at 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 Mudaliar elected 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.
HISTORY OF ICICI GROUP:-
1986:
 ICICI became the first Indian institution to receive ADB Loans.
 ICICI, along with UTI, set up Credit Rating Information Services of India Limited, India's
first professional credit rating agency.
 ICICI promotes Shipping Credit and Investment Company of India Limited.
1987:
 The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the first
public issue by any Indian entity in the Swiss Capital Market.
1988:
 ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in India.
1993:
 Promoted TDICI - India's first venture capital company.
1994:
 ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set up.

13 | P a g e
1996:
 ICICI Asset Management Company set up.
 ICICI Bank set up.
 ICICI Ltd became the first company in the Indian financial sector to raise GDR.
1997:
 ICICI merged with ICICI Ltd.
 Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
 ICICI Ltd was the first intermediary to move away from single prime rate to three-tier
prime rates structure and introduced yield-curve based pricing.
1998:
 The name The Industrial Credit and Investment Corporation of India Ltd changed to ICICI
Ltd.
 ICICI Ltd announced the takeover of ITC Classic Finance.
1999:
 Introduced the new logo symbolizing a common corporate identity for the ICICI Group.
 ICICI announced takeover of Anagram Finance.
2000:
 ICICI launched retail finance - car loans, house loans and loans for consumer durables
 ICICI becomes the first Indian Company to list on the NYSE through an issue of American
Depositary Shares.
2001:
 ICICI Bank became the first commercial bank from India to list its stock on NYSE.
 The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI Bank.
 ICICI Bank announces merger with Bank of Madura.

14 | P a g e
2002:
 ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms of
assets.
 "E Lobby,” a self-service banking centre inaugurated in Pune. It was the first of its kind in
India.
 ICICI Bank launched Private Banking.
 1100-seat Call Centre set up in Hyderabad
 ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of housing
projects in the county, launched in Pune,
 ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.
2003:
 The first Integrated Currency Management Centre launched in Pune.
 ICICI Bank announced the setting up of its first ever-offshore branch in Singapore.
 ICICI Bank's UK subsidiary launched.
 India's first ever "Visa Mini Credit Card,” a 43% smaller credit card in dimensions
launched.
 ICICI Bank subsidiary set up in Canada.
 Temasek Holdings acquired 5.2% stake in ICICI Bank.
 ICICI Bank became the market leader in retail credit in India.
2004:
 Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced
 Mobile banking service in India launched in association with Reliance Infocomm.
 India's first multi-branded credit card with HPCL and Airtel launched.
 Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.

15 | P a g e
2005:
 ICICI Bank and CNBC TV 18 announced India's first ever awards recognizing the
achievements of SMEs, a pioneering initiative to encourage the contribution of Small, and
Medium Enterprises to the growth of Indian economy.
 ICICI Bank opened its 500th branch in India.
 ICICI Bank introduced partnership model wherein ICICI Bank would forge an alliance
with existing micro finance institutions (MFIs). The MFI would undertake the promotional
role of identifying, training and promoting the micro-finance clients and ICICI Bank would
finance the clients directly on the recommendation of the MFI.
 ICICI Bank introduced the concept of floating rate for home loans in India.
 First rural branch and ATM launched in Uttar Pradesh at Delpandarwa, Hardoi.
 "Free for Life" credit cards launched wherein annual fees of all ICICI Bank Credit Cards
were waived off.
 ICICI Bank and Visa jointly launched mChq- a revolutionary credit card on the mobile
phone.
 Private Banking Masters 2005, a nationwide Golf tournament for high net worth clients of
the private banking division launched. This event is the largest domestic invitation amateur
golf event conducted in India.
 ICICI Bank became the largest bank in India in terms of its market capitalization.
2006:
 ICICI Bank became the first private entity in India to offer a discount to retail investors for
its follow-up offer.
 ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.
 ICICI Bank subsidiary set up in Russia.

16 | P a g e
2007:
 Introduced a new product - 'NRI smart save Deposits' – a unique fixed deposit scheme for
nonresident Indians.
 Representative offices opened in Thailand, Indonesia, and Malaysia.
 ICICI Bank became the largest retail player in the market to introduce a biometric enabled
smart card that allows banking transactions to be conducted on the field. A low-cost
solution, this became an effective delivery option for ICICI Bank's micro finance
institution partners.
 ICICI Bank raised Rs 20,000 crore (approx. $5 billion) from both domestic and
international markets through a follow-on public offer.
 ICICI Bank's GBP 350 million international bond offering marked the inaugural deal in the
sterling market from an Indian issuer and also the largest deal in the sterling market from
Asia.
 Launched India's first ever jewellery card in association with jewelry major Gitanjali
Group.
 ICICI Bank became the first bank in India to launch a premium credit card -- The Visa
Signature Credit Card.
 Introduced SME Toolkit, an online resource centre, to help small and medium enterprises
start, finance, and grow their business.
 ICICI Bank signed a multi-tranche dual currency US$ 1.5 billion syndication loan
agreement in Singapore.
 In a first of its kind, nationwide initiative to attract bright graduate students to pursue a
career in banking, ICICI Bank launched the "Probationary Officer Program.”
 Launched Bank@home services for all savings and current a/c customers residing in India
 ICICI Bank Eurasia LLC inaugurated its first branch at St Petersburg, Russia.

17 | P a g e
2008:
 ICICI Bank enters US, launches its first branch in New York.
 ICICI Bank launched iMobile, a breakthrough innovation in banking where practically all
internet-banking transactions can now be simply done on mobile phones.
 ICICI Bank concluded India's largest ever securitization transaction of a pool of retail loan
assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a multi-tranche
issue backed by four different asset categories. It is also the largest deal in Asia (e.g.-Japan)
in 2008 till date and the second largest deal in Asia (e.g.-Japan & Australia) since the
beginning of 2007
2009:
 Ms.Chanda D Kochhar appointed the Managing Director and CEO of ICICI Bank Ltd.
 ICICI Bank and Singapore Airlines launch "ICICI Bank Singapore Airlines Visa Platinum
Credit Card"
 ICICI Bank ties up with BSNL Cell One for bill payments.
2010:
 ICICI Bank launches website in Hindi.
 ICICI Bank opens first retail branch in Singapore.
 RBI approves the amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.
 First private sector Bank to inaugurate its 2000 Branch.
2011:
 ICICI Bank offers cash withdrawal at POS terminals
 ICICI Bank & Vodafone Essar ink pact for financial inclusion
 ICICI Bank & Indian Army sign MoU for banking services
 ICICI Bank and Intuit launch "Money Manager"
 ICICI Bank Limited Opens Second Retail Branch in Singapore

18 | P a g e
2012:
 ICICI Bank rolls out 25 electronic branches and launches many next generation banking
solutions
 ICICI Bank was the first private sector bank in India to offer PPF account facility at all
bank branches.
 Among the first banks to introduce account portability and also the only bank to offer
portability on two additional channels - Internet banking and Phone Banking.
 ICICI Bank launches its official Facebook Page. First bank in India to offer one-of-its kind
"Your Bank Account" App, which allows access to bank account information on Facebook.
2013:
 ICICI bank has been adjudged winner at the express IT Innovation award under the large
Enterprise category.
 ICICI bank wins awards under the categories of ‘Most Innovative Bank’ and ‘Most
innovative use of Multichannel Infrastructure’ at the Indian Bank’s Association’s
BANCON Innovation Awards 2013.
 ICICI bank won the Asian Banking & Finance retail banking award 2013 for the online
banking Initiative of the year. ICICI bank won an award under the social media category at
the information week EDGE award
 ICICI bank received the award for ‘Best Private Sector Banker’ by the Sunday standard
best bankers Awards 2013.

19 | P a g e
2014:
 Ms. Chanda Kochhar received an honorary Doctor of Laws from Carleton University,
Canada. The university conferred the award on Ms. Kochhar in recognition of her
pioneering work in the financial sector, effective leadership in a time of economic crisis
and support for engaged business practices.
 Ms. Chanda Kochhar featured in the Telegraph (UK) list of 11 most important women in
Finance.
 ICICI bank has been recognized as one of the top companies for leaders in India in a study
conducted by Aon Hewitt.
 IDRBT has given awards to ICICI Bank In the categories of ‘Social Media and Mobile
Banking’ and ‘Business Intelligence Initiatives.
2015:
 ICICI bank has been adjudged the ‘Best Retail Bank in India’ By the Asian Banker. It has
also emerged winners in the categories of ‘Best internet Banking Initiative’. It has also
emerged winners in the categories of ‘Best Internet Banking Initiative’ and Best Customer
Risk Management initiative’ Awards given by the Asian Banker.
 ICICI bank has been declared as the first runner up at outlook money awards 2015 in the
category of ‘Best Bank’.
 ICICI bank Won an award in the BFSL leadership summit awards in the, Best phone
banking for End users’ category.

20 | P a g e
ICICI GROUP COMPANIES
 ICICI Bank
 ICICI Prudential Life Insurance Company
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Lombard General Insurance Company
 ICICI Prudential Asset Management Company
 ICICI Venture
 ICICI Home Finance Company
BOARD OF DIRECTORS
ICICI SECURITIES LIMITED ICICI SECURITIES HOLDING
INC.
ICICI SECURITIES,
INC.
Ms. Chanda D. Kochhar, Chairperson Mr. Sanker Parameswaran,
Director
Mr. Anup Bagchi,
Chairman
Mr. Uday Chitale, Independent Director Mr. Sriram Iyer, Director Mr. Ajay Saraf
Mr. Vinod Kumar Dhall, Independent
Director
Mr. Warren Law Mr. Subir Saha
Ms. Zarin Daruwala Mr. Jaideep Goswami
Ms. Shilpa Kumar Mr. Bishen Pertab
Mr. Anup Bagchi, Managing Director &
CEO
Mr. Robert Ng
Mr. Ajay Saraf, Executive Director

21 | P a g e
VISION & MISSION OF ICICI GROUP
VISION: To be the leading service provider of financial services in India.
MISSION: We will leverage our people, technology, speed and financial capital to:-
 Be the banker of first choice for our customers by delivering high quality, excellent
products and services.
 Expand the frontiers of our business globally.
 Play a proactive role in the full realisation of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 Create value for our stakeholders.
PRIVACY POLICY: - ICICI is strongly committed to protecting the privacy of its customers.
DNC (DON'T CALL REGISTRY):- ICICI do respect your privacy, and appreciate that some of
you may not want to be contacted over the phone for our telemarketing activities. If this is the case
with you, you may use the Do Not Call form given below and register your phone number(s) that
you want excluded from our telemarketing list. The details that you enter in the form will remain
confidential
CODE OF CONDUCT AND BUSINESS ETHICS: -ICICI Group expects all its employees,
officers and directors to act in accordance with high professional and ethical standards.

22 | P a g e
INTRODUCTION TO ICICI DIRECT
ICICIDirect is an online trading and investment platform on ICICI Securities, the largest stock
broker firm in India providing a wide range of investment options to the retail and institutional
customers. ICICI Securities is part of ICICI Group, India's top financial service provider offering
banking and other financial services.
ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.
ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading platform
lunched in India to provide browser based equity, commodity and currency trading; all under one
login.
ICICIdirect.com is the most visited investment portal in India and by NRI's living across countries.
It is one website, which provides options to invest in over 20 financial products including Equity,
Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits, Loans, Tax Services,
New Pension Systems and Insurance.
ICICI direct also provide current stock market information which includes stock prices, news,
market research reports, stocks tips, events, IPO News and company results. Its 'Centre for
Financial Learning' initiative offers number of online and classroom programs for investors.
The 3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and ICICI
Demat Account, is the best offering for retail investors in India as it provides easiest way to invest
in stock market and other financial instruments. The customers can visit any of the over 1500
ICICI Bank branches to get help on financial products which are sold through ICICI direct.

23 | P a g e
AWARDS AND ACCOLADES
 Franchisor of the year award 2009
 Retail concept of the year awards 2009
 ICICIDirect wins the prestigious Outlook Money - India's Best e-Brokerage House for
2009.
 ICICIDirect has also won the CNBC AWAAZ Consumer Award for the Most Preferred
Brand of Financial Advisory Services.
 ICICIDirect been winning the prestigious Outlook Money - India's Best e-Brokerage House
for 2003-2004, 2004-2005, 2006-2007 and 2007-2008.
 ICICIDirect wins the prestigious Outlook Money - India's Best e-Brokerage House for
2008.
 ICICIDirect, the neighborhood financial superstore won the prestigious Franchise India
`Service Retailer of the Year 2008 award.
 Best Broker - Web 18 Genius of the Web Awards 2007
 CMO Asia Awards for Excellence in Branding and Marketing –
 Brand Leadership Award (overall)
 'Campaign of the Year' for the Trade Racer Campaign
 Brand Excellence in Banking and Financial Services for the store format
 Award for Brand Excellence in the Internet Business
 Frost and Sullivan Award for Customer Service Leadership

24 | P a g e
MAJOR COMPETITORS:
HDFC Securities Kotak Securities SBI Capital
Sharekhan Broker IDBI Capital HSBC InvestDirect
Angel Broking Indiabulls Services Reliance Securities
Bajaj Capital 5paisa.com Marwadi
Motilal Oswal Reliance Capital TATA
Goldman Sachs
ICICI DIRECT'S TRADING PLATFORMS:
ICICI Direct offers 2 trading platforms to its customers:-
1. SHARE TRADING ACCOUNT (WEBSITE BASED TRADING)
Website based online Share Trading Account by ICICIDirect is primarily for buying and selling of
stocks at BSE and NSE. The ICICIDirect website allows Cash Trading, Margin Trading,
MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund
Investment etc. ICICIDirect.com website is the primary Investment vehicle of ICICI Limited.
2. TRADE RACER (TRADING TERMINAL)
Trade Racer is a power packed Trading platform, which provides an investor with Live streaming
quotes & Research Calls, integrated fund transfer system along with multiple watch list facility.
Investor can also do technical analysis with the help advance charting tools. Single Order entry
page for Equities and Derivatives, Technical Analysis, Integrated Fund Transfer System,
Customized Interface, Intra-day and EOD Charts and Shortcut keys for faster access to markets are
some of the key features of Trade Racer Terminal

25 | P a g e
PRODUCTS & SERVICES
1. EQUITY: ICICIdirect.com offers various options while trading in shares:-
1.1. CASH TRADING: This is a delivery based trading system, which is generally done with
the intention of taking delivery of shares or monies.
1.2. MARGIN PRODUCT : Investor can also do an intra-settlement trading up to 3 to 4 times
available funds, wherein Investor take long buy/ short sell positions in stocks with the
intention of squaring off the position within the same day settlement cycle.
1.3. MARGINPLUS PRODUCT : Through Margin PLUS Investor can do an intra-settlement
trading up to 25 times your available funds, wherein Investor 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 Investor account
against his limits.
1.4. CALLNTRADE: CallNTrade allows Investor to call on a local number in your city &
trade on the telephone through our Customer Service Executives. This facility is currently
available in over 11 major states across India.
1.5. TRADING ON NSE/BSE: Through ICICIdirect.com, can trade on NSE as well as BSE.
1.6. MARKET ORDER: Investor could trade by placing market orders during market hours
that allows to trade at the best obtainable price in the market at the time of execution of the
order.
1.7. LIMIT ORDER: Allows to place a buy/sell order at a price defined by Investor. The
execution can happen at a price more favorable than the price, which is defined by
Investor, limit orders can be placed by Investor during holidays & non-market hours too.

26 | P a g e
2. DERIVATIVES:-
2.1 FUTURES: Through ICICIdirect.com, investor can now trade in index and stock futures on
the NSE. In futures trading, investor takes buy/sell positions in index or stock contracts having a
longer contract period of up to 3 months.
Trading in FUTURES is simple! If, during the course of the contract life, the price moves in
investor favor (i.e. rises in case investor has a buy position or falls in case investor has a sell
position), make a profit.
Presently only selected stocks, which meet the criteria on liquidity and volume, have been enabled
for futures trading.
Calculate Index and Know your Margin are tools to help you in calculating investor margin
requirements and the index & stock price movements. The Centre for Financial Learning is a
comprehensive guide on futures and options trading.
2.2 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.
To take the buy/sell position on index/stock options, investor has to place certain percentage of
order value as margin. With options trading, investor can leverage on his trading limit by taking
buy/sell positions much more than what he could has taken in cash segment.

27 | P a g e
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.
3. CURRENCY DERIVATIVES
ICICI Direct offers a simple and convenient way to trade and hedge 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 ICICI Direct offers the
opportunity to diversify investor portfolio.
THE BENEFITS OF CHOOSING ICICI DIRECT FOR YOUR CURRENCY TRADING ARE:
 Convenience - Provides a well-diversified set platform for online trading with competitive
brokerage under a single sign-on and completely paper-less investing experience
 Expertise - Investor can access Daily Research Reports as well as Fundamental &
Technical Reports and Advisory.
 Flexibility – Investor can select the Currency Pair USD/INR, EUR/INR, GBP/INR and
JPY/INR in which he wish to trade

28 | P a g e
FEW ADVANTAGES OF THIS MARKET ARE:
 Trading hours of 09:00 am to 05:00 pm provide more trading opportunities
 Trade in prominent currencies like US Dollar, EURO, Pound, and Yen against Indian
Rupee
 Real time and Transparent Currency Rates in comparison to OTC Rates.
 No Counterparty Default risk due to settlement guarantee by regulated clearing house.
 Low Taxation (No STT and CTT)
THE BENEFITS OF CHOOSING ICICI DIRECT FOR INVESTMENT IN MUTUAL FUNDS
ARE:
 Convenience - Provides a well-diversified set of investment products under a single sign-on
and completely paper-less investing experience.
 Expertise - Investor can access some of the researched funds selected based on rigorous
criterion.
 Flexibility - Investor may select the fund that best suits his need.
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 a
brokerage to buy and sell ETF units.

29 | P a g e
ICICI DIRECT ADVANTAGE:
The benefits of choosing ICICI direct for ETF investment are:
 Invest in a paperless manner
 No need to cut cheque
 Get instant confirmation & Calculate capital gains at click of a button
 Check portfolio for realized and unrealized profit/loss
LIFE INSURANCE
Wealth insurance ensures that investor receives a lump sum amount of money at the maturity of
the Policy. In the unfortunate event of death during the term of the policy, investor family
receives lump sum amount, called the Sum Assured. Thus it combines the benefits of protection
and saving in a single instrument. In ULIP policies, the investment risk in the investment
portfolio is borne by the policy holder.
Conditions Apply: Guaranteed benefits are available only if all premiums are paid as per the
premium payment term and the policy is in-force till the completion of entire policy term.

30 | P a g e
PRODUCT SUITABILITY FEATURES
Min/Max age at entry 0/69 years
depending on PPT
For anyone who is looking for
Equity or Debt linked savings
plan.
A unit-linked, non-participating,
savings and protection oriented
insurance plan.
Pay premiums for a limited period
or for the entire policy term.
Invest in Funds of choice or opt
for Life Cycle based Portfolio
strategy.
depending On PPT.
For anyone who is looking to save
Rs. 2 lac or more in a Equity or
Debt linked savings plan.
insurance plan
Flexibility of Premium Payment
term
Choose between different Equity
or debt funds
depending on PPT.
For anyone who is looking to save
Rs. 5 lac or more in a Equity or
Debt linked savings plan.
insurance plan
Choose between different Equity
or debt funds
Enjoy Guaranteed loyalty
additions which enhance your
returns
Min/Max age at entry 1Pay - 8/70;
5 pay - 8/60 years.
For anyone who is looking to
invest into equity and yet wants
his/her capital to be protected.
Protect savings from market
downturns through an Assured
Benefit
Pay premium just once or for a
limited period of 5 years
Get rewarded with Loyalty
Additions and Wealth Booster
Min/Max age at entry 5Pay -3;
7pay - 1; 10PAY - 0 / 65 years.
Guaranteed regular income
A savings and protection oriented
plan.
Pay premiums for just 5, 7 or 10
years.
Guaranteed Maturity Benefit plus
bonuses at maturity for long term
goals.
Min/Max age at entry 0/60 years.
guarantee in a savings cum
Insurance plan
A participating savings and
protection oriented plan
Guaranteed Maturity Benefit +
Guaranteed Additions at maturity
Pay premiums for a limited period
or for the entire policy term.

31 | P a g e
GENERAL INSURANCE
General Insurance products cover Health, Home, Motor and Travel, and help protect financial
health unforeseen events strike close to home. ICICI Lombard is the leading private general
insurance company and has one of the best products.
Partnership with ICICI Lombard enables to bring the entire range of insurance offerings personal
and professional needs, with minimal paperwork and at the comfort of home or office. Select
products can be entirely bought online on ICICIdirect.com with instant policy issuance.
FIXED DEPOSITS & BONDS
1. CORPORATE FIXED DEPOSITS: - ICICI Direct offers a range of Corporate Fixed
Deposits varying in tenures, interest rates & institutions to suit investment needs. The
deposit schemes have been specially chosen from high-safety options to ensure that
customers enjoy the twin benefits of returns and protection.
WHY OPT FOR CORPORATE FIXED DEPOSITS?
 If risk appetite is low, fixed deposits are perfect. 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.
 Higher Interest rates for senior citizens.
 High liquidity; most of these issuers offer 75% of the investment amount as loan @ 2%
over the interest rate on the deposit, as well as a pre-mature withdrawal Option.
 Potential to earn compounding interest on money by reinvesting the principal amount along
with the interest earned.
 Flexible tenure - there are various tenures ranging from 1 to 7 years.

32 | P a g e
2. 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.
Thus by purchasing a bond, investor loans money for a fixed period at a predetermined
interest rate. While the interest is paid to the bond holder at regular intervals, the principal
amount is repaid later, 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.
Customer also has the option of recurring interest along with Principal i.e. Cumulative
Interest. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the
lender (creditor), and the coupon is the interest. Bonds provide the borrower with external
funds to finance long-term investments, or, in the case of government bonds, to finance
current expenditure. Bonds must be repaid at fixed intervals over a period.
3. ELOCKER: - ICICIdirect.com's eLocker helps with the convenience and flexibility to store
and retrieve important documents when need them. Can store scanned copies of Passport,
PAN, Agreements or even medical reports securely under your ICICI direct account.
ELocker helps eliminate to carry copies of important documents either as a physical photo
copy or in storage devices like Compact Disks, USB token etc. With eLocker, can store
documents in one central secure location and know that documents are just a few clicks
away.

33 | P a g e
KEY BENEFITS:
 Secure and Accessible - eLocker ensures that documents are secure and accessible only via
a secure login.
 Anywhere, anytime access - eLocker is available from anywhere, via an Internet
connection under ICICI direct account login.
 Durability and Longevity - Storage of documents in CD's or other portable media is prone
to handling them with care, eLocker lets store documents online, which ensures durability
and longevity.
 No storage or retrieval hassles - Since documents are stored in a digital format under ICICI
direct account, the account is available to you wherever you go.
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.

34 | P a g e
NATIONAL PENSION SYSTEM (NPS)
Pension Fund Regulatory and Development Authority (PFRDA) was established by the
Government of India on August 23, 2003 to promote old age income security by establishing,
developing and regulating pension funds, to protect the interests of subscribers to schemes of
pension funds and for matters connected therewith or incidental thereto.
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
from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com desiring to open
an NPS account t can do so by clicking on "Subscribe NPS" and fulfilling the prerequisite process.
SEBI regulations require that at least two thirds of the directors of trustee company or board of
trustees must be independent i.e. they should not be associated with the sponsors. In addition, 50
per cent of the directors of AMC must be independent. All Mutual Funds are required to be
registered with SEBI before they launch any scheme.

35 | P a g e
HOW IS A MUTUAL FUND SET UP?
A Mutual Fund is set up in the form of a trust, which has a sponsor, trustees, and asset
management company (AMC) and custodian. The trust is established by a sponsor or more than
one sponsor who is like a promoter of a company. The trustees of the Mutual Fund hold its
property for the benefit of the unit holders. Asset Management Company (AMC) approved by
SEBI manages the funds by making investments in various types of securities. Custodian, who is
registered with SEBI, holds the securities of various schemes of the fund in its custody. The
trustees are vested with the general power of superintendence and direction over AMC. They
monitor the performance and compliance of SEBI regulations by the Mutual Fund.
ADVANTAGES OF MUTUAL FUNDS
Mutual funds have designed to provide maximum benefits to investors, and fund manager have
research team to achieve schemes objective. Assets Management Company has different type of
sector funds, which need to proper planning for strategic investment and to achieve the market
return.
1. PORTFOLIO DIVERSIFICATION
Mutual Funds invest in a well-diversified portfolio of securities, which enables investor to hold a
diversified investment portfolio (whether the amount of investment is big or small).
2. PROFESSIONAL MANAGEMENT
Fund manager undergoes through various research works and has better investment management
skills, which ensure higher returns to the investor than what he can manage on his own.

36 | P a g e
3. LESS RISK: -Investors acquire a diversified portfolio of securities even with a small
investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in
merely 2 or 3 securities.
4. LOW TRANSACTION COSTS: -Due to the economies of scale (benefits of larger volumes),
mutual funds pay lesser transaction costs. These benefits are passed on to the investors.
5. LIQUIDITY: -An investor may not be able to sell some of the shares held by him very easily
and quickly, whereas units of a mutual fund are far more liquid.
6. CHOICE OF SCHEMES: -Mutual funds provide investors with various schemes with different
investment objectives. Investors have the option of investing in a scheme having a correlation
between its investment objectives and their own financial goals. These schemes further have
different plans/options
7. TRANSPARENCY: -Funds provide investors with updated information pertaining to the
markets and the schemes. All material facts are disclosed to investors as required by the
regulator.
8. FLEXIBILITY: - Investors also benefit from the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme
and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also
offered to the investors in most open-end schemes.
9. SAFETY: -Mutual Fund industry is part of a well-regulated investment environment where
the interests of the investors are protected by the regulator. All funds are registered with SEBI
and complete transparency is forced.

37 | P a g e
DISADVANTAGES OF MUTUAL FUNDS
The mutual fund not just advantage of investor but also has disadvantages for the funds. The fund
manager not always made profits but might create loss for not properly managed. The fund have
own strategy for investment to hold, to sell, to purchase unit at particular time.
1. COSTS CONTROL NOT IN THE HANDS OF AN INVESTOR: -Investor has to pay
investment management fees and fund distribution costs as a percentage of the value of his
investments (as long as he holds the units), irrespective of the performance of the fund
2. NO CUSTOMIZED PORTFOLIOS: -The portfolio of securities in which a fund invests is
a decision taken by the fund manager. Investors have no right to interfere in the decision
making process of a fund manager, which some investors find as a constraint in achieving
their financial objectives.
3. DIFFICULTY IN SELECTING A SUITABLE FUND SCHEME: -Many investors find it
difficult to select one option from the plethora of funds/schemes/plans available. For this,
they may have to take advice from financial planners in order to invest in the right fund to
achieve their objectives.

38 | P a g e
DIFFERENT TYPES OF MUTUAL FUNDS
(A) ON THE BASIS OF OBJECTIVE:
 EQUITY FUNDS/ GROWTH FUNDS: Funds that invest in equity shares are called equity
funds. They carry the principal objective of capital appreciation of the investment over the
medium to long-term. The returns in such funds are volatile since they are directly linked to
the stock markets. They are best suited for investors who are seeking capital appreciation.
There are different types of equity funds such as Diversified funds, Sector specific funds
and Index based funds.
 DIVERSIFIED FUNDS: These funds invest in companies spread across sectors. These
funds are generally meant for risk-taking investors who are not bullish about any particular
sector.
 SECTOR FUNDS: These funds invest primarily in equity shares of companies in a
particular business sector or industry. These funds are targeted at investors who are
extremely bullish about a particular sector.
 INDEX FUNDS: These funds invest in the same pattern as popular market indices like
S&P 500 and BSE Index. The value of the index fund varies in proportion to the
benchmark index.
 TAX SAVING FUNDS: These funds offer tax benefits to investors under the Income Tax
Act. Opportunities provided under this scheme are in the form of tax rebates U/s 88 as well
saving in Capital Gains U/s 54EA and 54EB. They are best suited for investors seeking tax
concessions.

39 | P a g e
 DEBT / INCOME FUNDS: These Funds invest predominantly in high-rated fixed-income-
bearing instruments like bonds, debentures, government securities, commercial paper and
other money market instruments. They are best suited for the medium to long-term
investors who are averse to risk and seek capital preservation. They provide regular income
and safety to the investor.
 LIQUID FUNDS / MONEY MARKET FUNDS: These funds invest in highly liquid
money market instruments. The period of investment could be as short as a day. They
provide easy liquidity. They have emerged as an alternative for savings and short-term
fixed deposit accounts with comparatively higher returns. These funds are ideal for
Corporates, institutional investors and business houses who invest their funds for very short
periods.
 GILT FUNDS: These funds invest in Central and State Government securities. Since they
are Government backed bonds they give a secured return and also ensure safety of the
principal amount. They are best suited for the medium to long-term investors who are
averse to risk.
 BALANCED FUNDS: These funds invest both in equity shares and fixed-income-bearing
instruments (debt) in some proportion. They provide a steady return and reduce the
volatility of the fund while providing some upside for capital appreciation. They are ideal
for medium- to long-term investors willing to take moderate risks.
 HEDGE FUNDS: These funds adopt highly speculative trading strategies. They hedge
risks in order to increase the value of the portfolio.

40 | P a g e
(B) ON THE BASIS OF FLEXIBILITY
 OPEN-ENDED FUNDS: These funds do not have a fixed date of redemption. Generally
they are open for subscription and redemption throughout the year. Their prices are linked
to the daily net asset value (NAV). From the investors' perspective, they are much more
liquid than closed-ended funds.
 CLOSE-ENDED FUNDS: These funds are open initially for entry during the Initial Public
Offering (IPO) and thereafter closed for entry as well as exit. These funds have a fixed date
of redemption. One of the characteristics of the close-ended schemes is that they are
generally traded at a discount to NAV; but the discount narrows as maturity nears. These
funds are open for subscription only once and can be redeemed only on the fixed date of
redemption. The units of these funds are listed (with certain exceptions), are tradable and
the subscribers to the fund would be able to exit from the fund at any time through the
secondary market.
 INTERVAL FUNDS: These funds combine the features of both open-ended and close-
ended funds wherein the fund is close ended for the first couple of years and open-ended
thereafter. Some funds allow fresh subscriptions and redemption at fixed times every year
(say every six months) in order to reduce the administrative aspects of daily entry or exit,
yet providing reasonable liquidity
(C) ON THE BASIS OF GEOGRAPHIC LOCATION
 DOMESTIC FUNDS: These funds mobilize the savings of nationals within the country.
 OFFSHORE FUNDS: These funds facilitate cross border fund flow. They invest in
securities of foreign companies. They attract foreign capital for investment.

42 | P a g e
LITERATURE REVIEW
 SAHIL JAIN measured the performance of the equity based mutual funds in India. The
assets under management in this industry is more than Rs 6.8 thousand billion. The Indian
market is flooded with more than a thousand mutual fund schemes, promising better returns
than others. A total of 45 schemes offered by 2 private sector companies and 2 public
sector companies, have been studied over the period April 1997 to April 2012 (15 years).
The analysis has been made using the risk-return relationship and Capital Asset Pricing
Model (CAPM). The overall analysis finds that HDFC and ICICI have been the best
performers, UTI an average performer and LIC the worst performer which gave below-
expected returns on the risk-return relationship.
 According to CRISIL Mutual Fund Year book Apr 2013, In 2012 Equities emerged as the
star performer with the benchmark CNX Nifty gaining 28%. The debt market too
performed well with long-term debt funds gaining prominence due to some easing of
monetary stance by the Reserve Bank of India (RBI) and expectations of further easing by
the central bank to pump prime the economy. The mutual fund industry’s average assets
under management (AUM) grew by 15% in 2012 to Rs 7.87 trillion in December 2012;
debt funds’ AUM rose by over 26% to Rs 5.34 trillion and equity funds’ AUM by 19% to
Rs 1.92 trillion. The focus on retail investors and improving the penetration of mutual
funds continued through the year with Securities and Exchange Board of India (SEBI)
announcing various guidelines to promote investor education, reduce operational
bottlenecks and costs. Further, SEBI doled out incentives to fund houses that distribute
their products beyond the top 15 cities. Single plan structures and introduction of direct
plans were other investor friendly measures introduced by the regulator.

43 | P a g e
 VIJAYALAKSHMI SUNDAR measured that Mutual funds in India are becoming an ideal
investment choice compared to safe investments such as Fixed Deposits and postal which
gives comparatively low returns. Since the year 2003 from which the present stage of bull
run in the Indian capital markets began, the mutual fund industry While the growth in terms
of the AUM was subdued over the period from 2009-2013, it has gained unprecedented
momentum over the four year period until March 2013. The growth of the capital markets
in terms of BSE -30 shares Sensex has been still higher, and the banking sector has been on
a roll over the last couple of years, throwing up huge opportunities for wealth creation on
the way. As the Indian economy does well with over recent times, banks tend to be one of
the biggest beneficiaries. In fact, post the global financial crisis of 2008 and 2009, the
banking index delivered a return of 82% during May 2009 until October 2010, compared to
a return of 40% delivered by the broader market. Investment in banking sector funds is one
of the best avenue which guarantees stable return with medium risk when compare to other
sectors.
 JAFRI ARSHAD HASAN measured that Indian mutual fund industry is going through a
very crucial phase because of the changing regulations and confusing atmosphere. In this
study he discuss the impact of regulatory changes by SEBI on mutual fund industry and it’s
after affects. It will also throw some light on the international factors that affected Indian
mutual fund industry and its sentiments. At the end of the, there will be some suggestions
for the regulator, the intermediaries and the Investors. This is an attempt to minimize the
level of negativity and pessimism from the market and to create an atmosphere of trust,
information and optimism.

44 | P a g e
 According to CII, all efforts at the moment are being synchronized towards attaining the
objective of financial inclusion. The drive to expand reach beyond Tier 1 cities and make
mutual fund offerings available to people in smaller towns and cities has indeed taken up
the attention of the industry. However, several components of such an initiative, like
investor awareness, broadening investor participation and product innovation, need to be
aligned in order to fully establish inclusive growth. The industry needs to give due
emphasis on the above factors, drawing out an efficient business and operating model to
ensure that the inherent challenges that the industry is facing is efficiently dealt with.
Designing a competent and all pervasive business model has all the more become important
in the current scenario of changing business and regulatory legislations.
 According to KPMG report, The Mutual fund industry needs to have an ‘outside-in’
perspective as compared to ‘inside-out’ perspective. Understanding investors’ needs should
be followed by a product channel alignment. A number of change catalysts discussed in the
previous section like technology, investment in B-15 cities, investment adviser etc. would
be required to help ensure the overall objective of prudent growth and profitability.
Investor awareness campaigns should be conducted to increase the AUM in smaller cities
which would help industry to progress in a holistic manner. AMC, distributors and IFAs
are all doing their bit but AMFI and SEBI should also play a major role in creating
awareness. For future growth, tax could act as an enabler as tax benefits can be a pull factor
for investors. The future potential of Investment Advisors could be decided by Investors
and the regulators. Presence of an unbiased advisor could build investor trust on the one
hand and reward performing products on the other.

45 | P a g e
 According to CII Mutual fund summit 2013, the outlook of the mutual fund industry is
governed to a great extent by the economic situation in the country. The current economic
scenario with sticky inflation and rising fuel prices is likely to adversely impact
perceptions, resulting in depressed equity inflows into the market. They believe that the
mutual fund industry manifests huge opportunity for growth and further penetration, and
this can be achieved over time, with support from technology. The key lies in strengthening
distribution networks and enhancing levels of investor education to increase presence in
rural areas. In terms of opportunity, the infrastructure debt market has become very
attractive, luring investors to invest in this space.
 According to Ms. Avani shah, Faculty Shree Chimanbhai Patel Institute of Management
and Research, Ahmedabad, and Dr. Narayan baser Associate Professor, Shri Jairambhai
Patel Institute of Management and Computer Application, Ghandhinagar, found that a
mutual fund is a common pool of money into which investors place their contributions that
are to be invested in accordance with a stated objective. Being a part of financial markets
although mutual funds industry is responding very fast by analyze investor’s perception
and expectations. In their study research of 305 mutual fund investors was conducted in
Ahmedabad using non-probability convenience sampling. After using One-Way
ANNOVA, researcher had come to a conclusion that Funds reputation, Withdrawal
facilities, brand name, Sponsor’s past performance in terms of risk & return varies among
the investors of different age group & investor’s different occupation group.

46 | P a g e
 According to Prof Gauri Prabhu Associate Professor AISSMS Institute of Management,
Pune and Dr. N.M. Vechalekar Associate Dean, IndSearch, Pune, the Mutual Funds provide
a platform for a common investor to participate in the Indian capital market with
professional fund management irrespective of the amount invested. The Indian mutual fund
industry is growing rapidly and this is reflected in the increase in Assets under management
of various fund houses. Mutual fund investment is less risky than directly investing in
stocks and is therefore a safer option for risk averse investors. Monthly Income Plan funds
offer monthly returns and invest majorly in debt oriented instruments with little exposure to
equity. However it has been observed that most of the investors are not aware of the
benefits of investment in mutual funds. This is reflected from the study conducted in this
research paper. This paper makes an attempt to identify various factors affecting perception
of investors regarding investment in Mutual funds.
 According to Deepti Goel Dept. of Economics, Assistant Professor, PGDAV College,
D.U., India and Richa Gupta Dept. of Commerce Assistant Professor PGDAV College,
D.U., India found that the landscape of the financial sector in India is continuously
evolving, accredited to regulatory changes being undertaken, which is leading market
participant like the asset management companies (AMCs) and distributors to restructure
their strategies and adopt business models which will yield sustainable benefits. Some of
the other trends which have emerged strongly over the past year are heavy outflows
triggered by market volatility and partnering of asset management companies with banks,
to increase the strength of distribution networks.

48 | P a g e
RESEARCH METHODLOGY
Research methodology is a methodology for collecting all sorts of information & data pertaining to
the subject in question. The objective is to examine all the issues involved & conduct situational
analysis. The methodology includes the overall research design, sampling procedure & fieldwork
done & finally the analysis procedure. The methodology used in the study consistent of sample
survey using primary data. The primary data has been collected with the help of questionnaire. The
questionnaire has been drafted & presented by the ICICI Securities, which was in online mode
PROBLEM OF THE STUDY
 Most of the customers of ICICI Mutual Fund simplified are inactive for long time.
 For improving their service.
 For creating awareness of their updated website among their existing customer.
 To know about their future investment.
OBJECTIVE OF STUDY
 To create awareness to its customer about Mutual Fund.
 To make them aware of online portfolio of ICICI Direct.
 To know about response of the customer for future investments in mutual fund.
SCOPE OF THE STUDY
 All the analysis and suggestions are based on the analysis of the primary data, which I will
collect with the help of questionnaire.
 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.
 The research was carried on in Kailash Colony. I had been sent at Kailash Colony branch
of ICICI Securities where I completed my project work.

49 | P a g e
SAMPLING FRAMEWORK:
 Sample Size: - Sample of 50 customers of ICICI Securities will be taken into study and
their data will be collected.
 Sample Area: - Sampling area will be taken around Delhi – NCR.
 Duration of project: - Time will be taken to complete the project is 2 months
DATA COLLECTION:
Collection of data (primary) by:
 Questionnaire
 Face to face interaction
DATA ANALYSIS:- After data collection, I am able to analyze customer views, perception and
opinions related to mutual fund and from this, ICICI Securities will come to know the customers’
requirements.
DATA INTERPRETATION: - Interpretation of data is done by using statistical tools like Pie
diagrams, Bar diagrams etc. and using quantitative techniques (by using these techniques) accurate
information will obtained.
LIMITATIONS OF THE STUDY-
 I had to rely upon the information given to me by the customers to arrive at conclusion.
Their responses might not be fully true.
 This study is only limited to Kailash Colony, therefore the conclusion may not be
universally applicable.
 Since the researcher is a student, he lacks professional approach.

50 | P a g e
RESPONSIBILITIES ASSIGNED BY THE PROJECT MENTOR:
 I have to meet ICICI Securities customers and have to tell them about mutual fund and its
benefit.
 I have to show mutual fund and ICICI Direct site demo to customers.
 I am responsible to solve their queries about mutual fund.
 If customers want to know about online portal and online trading I have to give them site
demo.
 I have to make customer fill up one online feedback form.
SAMPLING TECHNIQUE: Study the Project, a Simple Random Sampling technique is used.
DATA INTERPRETATION: Interpretation of data is done by using statistical tools like Pie
diagrams. Bar diagrams etc. and using quantitative techniques (by using these techniques) accurate
information is obtained.
STATISTICAL TOOLS USED FOR ANALYSIS: -Out of the total respondents, the respondents
who responded logically were taken into account while going into statistical details & analysis of
data. The tools that have been used for analyzing data & inference drawing are mainly statistical
tools like percentage, averages, etc. As per questionnaire, I have find out different responses from
different people. According to their responses, I analyze the findings and draw certain remarks.

52 | P a g e
DATA ANALYSIS AND INTERPRETATION
Q1. Have you invested in any of the following in the last 12 months?
Equity Futures and Option Mutual funds
Insurance Corporate FD Debenture/ bonds
PPF Others None
Ans:
Figure no.2. Number of customers invested in securities in the last 12 months.
Analysis: It is seen in the above graph that most of the customers in ICICI securities prefer to
make investment in equity and mutual fund and less in Futures and Option, insurance etc.
0
5
10
15
20
25
30
35
40
RESPONSES
Responses

53 | P a g e
Ques 2. What is your preferred mode of investment?
Online Offline
Figure no. 3: Preferred mode of investment.
Analysis:
It is seen in the above graph that out of 50 customers 32 prefer to do their investment online,
But only 18 customers are preferred to do their investment offline.
0
5
10
15
20
25
30
35
online offline
RESPONSES
responses

54 | P a g e
Ques 3. Have you invested in any of the following through ICICI Direct.com in the last 12
months?
Equity Futures and option Mutual funds
Insurance Debenture/ bonds None
Ans: Out of 50 customers not even a single person invested in any of the above mention funds
through ICICIdirect.com in the last 12 months. Mainly the customers assigned was inactive
customers.
Q4. Were you aware that you can invest in mutual funds through ICICI direct.com?
Yes NO
Figure No.4: - Reponses of customer about awareness that they can invest in MF through
ICICIDirect.com.
Analysis: According to the survey, out of 50 customers, 47 customers already knew that they
Can invest in Mutual Fund through ICICI direct.com but there are still 3 customers who didn’t
Knew about this.
94%
6%
RESPONSES
Yes
no

55 | P a g e
Q5. What are the reasons for not investing in mutual funds through ICICI direct.com?
I need assistance to invest in Mutual Fund through ICICI direct.com
I need more knowledge on Mutual Fund before I invest.
I am not interested as I invest through other brokers/agents.
I do not invest in Mutual Fund.
Ans:
Table no. 1. Table showing reasons of customers for not investing in mutual funds through ICICI
direct.com
Figure no 5. Figure showing reasons of customers for not investing in mutual funds through
ICICI direct.com
Analysis: According to the survey it is been seen that out of 50 customers, majority of customers
do not want to invest in mutual funds. There can be a lot of reasons for not investing in mutual
funds. The reason could be lack of awareness, fear of losing their money and many more but still
there are 16 customers out of 50 who want to invest in MF but want some assistance to invest in
Mutual Fund.
32%
12%
6%
50%
RESPONSES
I need assistance to invest in MF
through ICICI direct.com
I need more knowledge on MF
before I invest
I am not interested as I invest
through other brokers/agents.
I do not invest in MF
Options Responses
I need assistance to invest in Mutual Fund through ICICI direct.com 16
I need more knowledge on Mutual Fund before I invest 6
I am not interested as I invest through other brokers/agents. 3
I do not invest in Mutual Fund 25

56 | P a g e
Q6. Which of the following online transactions have you done in the past?
I buy movie tickets online I buy flight tickets online
I book hotels online. I use online banking
I do not do any online transactions.
Ans:
Table no2. Table showing responses of customers who have done online transactions in the
past.
Figure No. 6 Figure showing responses of customers who have done online transactions in the
past.
Analysis: According to the survey, it is been seen that most of the customers use online
transactions for using online banking, but some of the customers are also doing online transactions
for buying movie tickets, hotels. But still there are some customers who did not do any online
transactions.
23%
19%
13%
42%
3%
RESPONSES
I buy movie tickets online
I buy flight tickets online
I book hotels online.
I use online banking
I do not do any online
transactions.
Options Responses
I buy movie tickets online 21
I buy flight tickets online 17
I book hotels online. 12
I use online banking 39
I do not do any online transactions. 3

57 | P a g e
Q7 How often do you transact online in the above mentioned transaction?
Monthly Quarterly
Once in 6 months once in a year
Ans.
Table no. 3. Table showing how regularly the customers used to transact online.
Figure no. 7. Figure showing how regularly the customers used to transact online.
Analysis: - According to a survey, out of 50 customers, 32 customers used to transact online
monthly. While there are 7 customers who used to transact online once in a quarter, while there are
still 5 persons who used to transact online once in a year.
64%
14%
12%
10%
RESPONSES
Monthly
Quarterly
Once in 6 months
Once in a year
Options Responses
Monthly 32
Quarterly 7
Once in 6 months 6
Once in a year 5

58 | P a g e
Q8. Which medium of news information and analysis do you use to keep yourself updated on
investment products?
I discuss with my friends/family/ colleagues
I use financial websites for comparisons and news
I have a financial advisor/ broker/ MF distributor who provides me the information.
I read media reports
I prefer to do my own research
Ans:
Figure no. 8 Figure showing medium of news information and analysis customers use to keep
themselves updated on investment products.
Analysis:- According to the survey, it is been seen that most of the customers read media reports
and prefer todo their own research to keep themselves updated on investment products. While the
customers using financial websites and who discus with their family and friends to update
themselves on investment products are less in numbers.
5
6
6
38
20
0 5 10 15 20 25 30 35 40
I use financial websites for comparions and news
I have a financial advisor/ broker/ MF distributor who
provides me the information.
RESPONSES
responses

59 | P a g e
Q9. How do you check the performance of all/any of your investment?
I update investment details on a third party portfolio website and check regularly.
I ask my financial advisor/ broker/ Mf distributor to send me the information.
My broker/ bank provides me the information.
Others____________________
Table no. 4. Table showing how does the customers check performance of all/any of their
investment.
Figure no. 9 Figure showing how does the customers check performance of all/any of their
investment.
Analysis: According to the survey, out of 50 customers, 26 customers ask their broker/bank to
provide them the information to check the performance of all/any of their investment. But 10
customers are still there who check performance of all/any of their investment on their own.
7
7
26
10
0 5 10 15 20 25 30
I update investment details on a third party portfolio
website and check regularly.
I ask my financial advisor/ broker/ Mf distributor to
send me the information.
others
RESPONSES
responses
Options Responses
I update investment details on a third party portfolio website and check regularly. 7
I ask my financial advisor/ broker/ Mf distributor to send me the information. 7
My broker/ bank provides me the information. 26
Others 10

60 | P a g e
Q10. Would you consider switching your investment relationship to ICICIdirect.com?
Yes No
Ans:
Figure No.10 Figure showing responses of customers about switching their investment relationship
to ICICI direct.com
Analysis: According to the survey it is been seen that out of 50 customers 45 customers were
interested in switching their investment relationship to icicidirect.com while 5 customers disagree
to switch their relationship to ICICI direct.com.
0
5
10
15
20
25
30
35
40
45
50
yes no
RESPONSES
responses

61 | P a g e
Q11. Which of the following site features do you find useful at ICICI direct site?
Capital gain statement
Portfolio monitoring
Ease of purchase/redemption
Personalized research recommendations against holdings
Others
Ans:
Figure No.11 Figure showing responses of customers about the site features they found useful at
ICICIdirect.com.
Analysis: According to the survey it is found that most of the ICICI securities’ customers found
capital gain statement useful at icici direct site.
0 5 10 15 20 25 30 35 40
Others
RESPONSES
Series1

63 | P a g e
FINDINGS
 Most of the customers were not fully aware with mutual fund and its advantage.
 Customers even who know about mutual fund, are not investing their money into it because
of lack of knowledge about mutual fund.
 Customers prefer to invest in other alternatives mostly in equity and Share market.
 In future, customers would like to invest in mutual fund if ICICI Securities create
awareness and provide right knowledge about mutual fund among customers.
 Most of the customers were using online mode of payment frequently.
 Almost every customer were agree to continue with ICICI Securities services.
 There was communication gap with some customers to their respective Relationship
Manager.
 Mostly customers update themselves about investment decision by their own or take advice
with family and friends.

64 | P a g e
SUGGESTIONS AND RECOMMENDATIONS
 ICICI Securities should provide proper guidance to its customers about mutual fund
through seminars or other way of interaction.
 There should be one department, which will call customer once in a month and notice their
problem or their complaint so there would not be any communication gap.
 At the time of opening account, ICICI Securities can offer one tutorial class about mutual
fund or about other investment plans so there would not be any lack of knowledge in
customer mind.
 ICICI Securities can send details about investment decision to its customers through e-mail
or SMS.
 Before making any investment financial advisors should first enquire about the risk
tolerance of the investors, their need, and time. By considering these three things they can
take the customers into consideration.

65 | P a g e
CONCLUSION
Running of successful Mutual Funds requires complete understanding the mind set of small
investors. This is a study taken to make an attempt to understand the financial behavior and
perception of ICICI Securities customers. I observed that many of customers have fear of Mutual
Fund. Many of customers do not invest in mutual fund due to lack of awareness although they
have money to invest. Most of customers prefer to invest in equity. Investors should be made
aware of the benefits. Nobody will invest till he/she is fully convinced of the scheme.

66 | P a g e
BIBLIOGRAPHY
 Jain, Sahil, (July-Aug. 2012), Analysis of Equity Based Mutual funds in India (IOSR
Journal of Business and Management (IOSRJBM) Volume 2, Issue 1), PP 01-04.
 Kaur, Gurjeet, Sharma R.D, Mahajan Neha, Oct-Dec 2014, Segmentation of Bank
Customer by Loyalty and Switching Intentation, Vol(39) No.4.
 CRISIL Research, Apr 2013, CRISIL Mutual Fund Year Book, PP 01-80
 Sundar, Vijayalakshmi, Mar-Apr 2014, Growth and Development of Mutual fund industry
with reference to banking Sector Funds: An Indian Perspective, Financial & Business
management (IFBM), Vol.2 No.2 PP 01-05.
 Hasan, Arshad Jafri, 2013, analysis of Mutual Fund Industry of India in the light of New
Regulation and International factors, I.J.E.M.S, Vol.4(2), PP01-03.
 CII 6th
Mutual fund Summit, 2010, international conference.
 www.kpmg.com/in, Indian Mutual Fund Industry, Distribution Continuum: Key to success.
 CII Mutual Fund Summit, 2013, Indian Mutual Fund Industry: Unearthing the growth
potential in untapped markets, PP 04-26.
 Shah, Avani & Baser Narayan, Oct 2012, Mutual Fund: Behavioral Finance’s perspective,
Asia pacific Journal of Marketing & management Review, Vol.1 No.2, PP 01-11.
 Mehta, Shantanu & Shah, Charmi, Sept 2012, Preference of Investors for Indian mutual
funds and its performance Evaluation, Pacific Business review international, Vol.5 issue 3,
PP 01-16.
 Prabhu, Gauri & Vechalekar, N.M, perception of Indian Investor towards investment in
mutual funds with special reference to MIP funds, IOSR Journal of Economics and Finance
(IOSR-JEF), PP 01-09.
 Chakrabarti, Rajesh & Malik, Sarat & Khairnar, Sudhakar & Verma, Aadhaar, (2013),
penetration of Mutual Funds in India: Opportunities and Challenges, PP 01-62.

67 | P a g e
 Subrahmanyam, N, (2008-09), Mutual Funds and Banking: India and Global Experience,
PP 03-54.
 Goel, Deepti & Gupta, Richa, May 2014, Mutual Fund Industry in India: An Overview,
International journal of Emerging research in management & Technology Vol. 3, Issue 5,
PP 01-04.
 Dunna, Murlidhar, Oct 2012, mutual Funds in India-Issues, Opportunities and Challenges,
Asia pacific journal of Marketing & Management Review, Vol 1, No.2 , PP 01-10.
 http://www.icicigroupcompanies.com
 http://www.icicisecurities.com
 http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-centre/investor-
progrm/mutual_fund.html
 http://www.mutualfundindia.com
 http://www.icicigroupcompanies.com/history.html

68 | P a g e
ANNEXURE
SAMPLE QUESTIONNAIRE
I am conducting a small research on the above topic. The information provided will be kept
confidential and will be used solely for academic research. Your response is highly appreciated.
Name: ________________ Age: _________________
Gender: Male Female Occupation: ___________
Q 1. Have you invested in any of the following in the last 12 months?
Insurance Corporate FD Debenture/ bonds
PPF Others None
Q2. What is your preferred mode of investment?
Online Offline
Q3. Have you invested in any of the following through ICICI Direct.com in the last 12 months?
Insurance Debenture/ bonds None
Q4. Are you aware that you can invest in mutual funds through ICICI direct.com?
Yes NO
Q5 what are the reasons for not investing in mutual funds through ICICI direct.com?
I need assistance to invest in Mutual Fund through ICICI direct.com
I need more knowledge on Mutual Fund before I invest.
I am not interested as I invest through other brokers/agents.
I do not invest in Mutual Fund.

69 | P a g e
Q6. Which of the following online transactions have you done in the past?
I buy movie tickets online
I buy flight tickets online
I book hotels online.
I use online banking
I do not do any online transactions.
Q7. How often do you transact online in the above mentioned transaction?
Monthly Quarterly
Once in 6 months Once in a year
Q8. Which medium of news information and analysis do you use to keep yourself updated on
investment products?
I use financial websites for comparisons and news
I have a financial advisor/ broker/ Mutual Fund distributor who provides me the
information.
Q9. How do you check the performance of all/any of your investment?
I update investment details on a third party portfolio website and check regularly.
I ask my financial advisor/ broker/ Mutual Fund distributor to send me the information.
Others____________________

70 | P a g e
Q10. Would you consider switching your investment relationship to ICICIdirect.com?
Yes No
Q11. Which of the following site features do you find useful at ICICI direct site?
Others
Q12. Any suggestions/ recommendations-
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________
_______________________________________________________________________________

ICICI Mutual fund simplified

More Related Content

What's hot

Viewers also liked

Similar to ICICI Mutual fund simplified

Recently uploaded

ICICI Mutual fund simplified