summer project of ICICI on MF

A
Summer Internship Project Report
On
“Mutual Funds Simplified
- An Investor Awareness Initiative”
In the partial fulfillment of the Degree of
Master of Management Studies
under the University of Mumbai
By
Mr. Ashtikar Shubham Vilas
[Roll No: A - 02]
Specialization: Marketing
Batch: 2014-16
Under the Guidance of
Mr. Siddharth Vaidya
(Branch Manager, ICICI Securities, Nagpur)
Prof. Projit De
(Internal Guide)
SASMIRA’s Institute of Management Studies and
Research
Worli, Mumbai-400030.
2015

A
Summer Internship Project Report
On
“Mutual Funds Simplified
-An Investor Awareness Initiative”
In the partial fulfillment of the Degree of
Master of Management Studies
Under the University of Mumbai
By
Mr. Ashtikar Shubham Vilas
[ Roll No: A - 02]
Specialization: Marketing
Batch: 2014-16
Under the Guidance of
Mr. Siddharth Rajvaidya
(Branch Manager, ICICI Securities, Nagpur)
Prof. Projit De
(Internal Guide)
SASMIRA’s Institute of Management Studies and
Research
Worli, Mumbai-400030.
2015

PROJECT REPORT
ON
“MUTUAL FUND SIMPLIFIED”
-AN INVESTOR AWARENESS INITIATIVE
SUBMITTED TO
SASMIRA’S INSTITUTE OF MANAGEMENT
STUDIES & RESEARCH,
SASMIRA MARG , WORLI ,MUMBAI
BY
Shubham Vilas Ashtikar
Roll No-02
Batch - 2014-2016
IN PARTIAL FULFILLMENT OF
MASTER OF MANAGEMENT STUDIES (MMS),
UNIVERSITY OF MUMBAI
JULY, 2015

DECLARATION
I, Mr. Shubham Vilas Ashtikar hereby declare that this
project report is the record of authentic work carried out by me
during the period from 12 May to 11 July and has not been
submitted to any other University or Institute for the award of
any degree / diplomaetc.
Signature:
Name of the student: Shubham Vilas Ashtikar
Date:

CERTIFICATE FROM THE COMPANY /
ORGANISATION
Certified that the summer internship project report on
“Mutualfund simplified” is the bonafide work of Mr.
Shubham Ashtikar Roll No. 02, MMS Batch 2014-16 in
ICICI SECURITIES carried out under my supervision
during MAY 12 2015 to JULY 11 2015.
Place: Signature of the Supervisor
Date:

CERTIFICATE FROM GUIDE
This is to certify that Mr. Shubham Vilas Ashtikar of
Sasmira’s Institute of Management Studies & Research has
successfully completed the project work titled “Mutual fund
simplified” in partial fulfillment of requirement for the
completion MMS as prescribed by the University of Mumbai.
This project report is the record of authentic work carried out
by him / her during the period from MAY 11 2015 to JULY
10 2015.
He has worked under my guidance.
Signature :
Name :
Project Guide (Internal): Prof. Projit De
Date : 31st July, 2015

ACKNOWLEDGEMENT
I take this opportunity to express my profound gratitude and
deep regards to my Company guide Sidhrath Rajvaidya for
his exemplary guidance, monitoring and constant
encouragement throughout the course of this project. The
help & guidance given by him time to time shall carry me a
long way in the journey of life on which I am about to
embark.
I would like to thank our Director Amit Oak for his
encouragement and Niyat shetty for his cordial support,
valuable information and guidance, which helped me in
completing this task through various stages report.

Table of Content:-
Sr No. Chapter Pg. No.
1 Executive Summary 1
2 Introduction 3
3 Research Methodology 32
4 Data Processing And Analysis 36
5 Finding 44
6 Conclusion 48
7
Recommendation
50
8 Bibliography
52
9 Data Sheet 54

Mutual Fund Simplified
- An Investor Awareness initiative

1
EXECUTIVE SUMMARY:-
The project have made on mutual fund awareness among customer. The main
purpose of the project is to create awareness into common people regarding mutual fund.
ICICI has taken an initiative awareness mutual fund for the common people. Scope of this
project is to know what common people think about mutual fund. Mutual fund is one of the
best investment options available in the market. It is also known as good financial product
which is offer by any financial company to the customer. We also compare mutual fund
with other investment option like fixed deposit. The sampling unit during this research was
the retail investors. Categories of Retail investors are Govt. Employees, private Employees,
Businessmen, Retired people and professionals. Data collected through interview schedule
and statistical tools used such as percentage analysis, weighted ranking analysis and Chi-
square analysis. The study concludes that debt scheme are suitable for genuine investors as
there exists a variety of investors needs depending on objective, expectations and risk
taking abilities etc. It is good channel investing and turning it into an investment
opportunity as well as for availing tax relief. There is no doubt that the determinant for
investing in a mutual fund. In that project I met more than hundred clients of ICICI and
give them presentation about mutual fund and take their feedback about that presentation.
There are mainly three type customer young, middle age and old age people. Young people
are looking for the investing option mostly they invest in long term. On the other hand
middle age people having their investment already and the last old age people want early
retunes. We study this type of investors and mention their feedback report. In that repot we
study mutual fund investing option. Main problem of research is that mostly people are not
interested or some time they are not aware about that respected topic. Those who are know
about mutual fund they are good with interaction and get more information about topic.
With theory have some live experience which collect from are customer. Mainly project
design on the basis of two level of data collection one is primary data and secondary data.
Source of primary data is physical discussion with customer and getting data from them and
secondary data is search from internet and company profile on search engine on internet.
On the basis of that project report can make a target market for mutual fund product from
many customers. Get to know what type of mutual fund people mostly like. This project

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makes a clear image in front of customer as well distributer how and which mutual fund is
good for buying and selling. With the help of discussion which did with customer we can
also know what people think about company. It makes clear what is image of the company
in market. How much people trust on organization and company care for its customer.

4
Background of the topic:-
Mutual fund is one of the best options for the
investor available into market. A mutual fund is the trust that pools the savings of
a number of investors who share a common financial goal. Anybody with an
investible surplus of as little as a few hundred rupees can invest in Mutual Funds.
The money thus collected is then invested by the fund manager in different types
of securities. These could range from shares to debenture, from Government Bond
to money market instruments, depending upon the scheme’s stated objective. It
gives the market returns and not assured returns. In the long term market returns
have the potential to perform better than other assured return products. Investment
in Mutual Fund is the most cost efficient as it offers the lowest charge to the
investor.
The mutual fund is made up of money pooled
together by a large number of investors who give their money to fund manager to
invest in a large portfolio of stocks and/or bond. There are various funds available
in the market for investments offering different risk and return profile. The
investor has to decide as to which fund he should select for investment that will
minimize his risk and maximize returns to the largest extent. The project
compares and analyses the performance of top rated fund, which will look at the
reason of why the top rated fund is performing better than the other fund. The
project will help the common man to evaluate the performance of the fund and to
select the best fund for investment. The investment proceeds are then passed along
to individual investor .the value of a share of a mutual fund, known as the net
asset value per share (NAV), is calculated daily based on the total value of the
fund dividend by the number of the shares currently issued and outstanding . A
mutual fund is a trust that pools the saving of the number a investor who share a
common financial goal. The money thus collected is them invested in capital
market instrument such as share, debenture and other securities. We can make
trust on the mutual fund but it cannot predictable term which are only depend
upon the market fluctuation. The mutual fund industry in India Started in 1963
with the formation of Unit Trust of India, at the initiative of the Government of
India and Reserve Bank. The history of mutual funds in India can be broadly
divided into four distinct phases. First part is started 1963 on ward It was set of

5
reserve bank of India and functioned under the Regulatory and administrative
control of the Reserve Bank of India. After that introduce second phase is started
in 1987 in that first time introduce non-UTI public sector mutual fund set up by
public sector bank and life insurance. SBI was first non-UTI public sector bank.
With the entry of privet sector in 1993 the new era started in the Indian mutual
fund industry.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996. The forth and the last phase is continue since
2003 February this was end of UTI.
History of Mutual Funds in India
The first Indian mutual fund was set up in 1963,
when the Government of India created the Unit Trust of India (UTI). Until 1987,
UTI enjoyed a monopoly in the Indian mutual fund market and sold a range of
mutual funds through a network of financial intermediaries. At the end of 1988
UTI had Rs. 6,700 cores of assets under management. In 1987, the Government of
India permitted public sector banks and the Life Insurance Corporation of
India (LIC) and General Insurance Corporation of India (GIC) to enter the mutual
fund industry. The State Bank of India's SBI Mutual Fund was the first such
mutual fund to be established in 1987. Canara Bank set up Canbank Mutual Fund
shortly after in the same year, followed by funds from Punjab National
Bank and Indian Bank in 1989, Bank of India in 1990 and Bank of Baroda in
1992. The LIC established its mutual fund in 1989 and the GIC in 1990. At the
end of 1993, the mutual fund industry had assets under management of Rs.
47,004 corers. In 1993, with the creation of SEBI and better regulation,
transparency and liberalization of capital markets (which included the creation of
the NSE and the NSDL), the private sector was allowed to enter the mutual fund
industry. Kothari Pioneer Mutual Fund (now merged into Franklin Templeton
Investments) was the first private sector mutual fund to be registered in July 1993.
In the following years, international giants in the industry as well as Indian
corporate and industrial families setting up their own mutual funds, purchasing
existing fund companies or merging with them. At the end of January 2003, there

6
were 33 mutual funds with assets totaling Rs. 1, 21,805 corers. The UTI still led
the pack with Rs. 44,541 corers worth of assets. In February 2003, faced with
financial mismanagement, opaque bookkeeping and huge, growing liabilities at
the UTI, the Government of India suspended redemptions, guaranteed the assets,
unveiled a comprehensive suite of reforms and repealed the Unit Trust of India
Act 1963. The UTI was split into two parts. One was called the "Specified
Undertaking of the Unit Trust of India" with Rs. 29,835 corers of assets largely
belonging to the UTI's Unit 64 fund. The fund was rumored to own property,
commodities and a whole range of unconventional and often undocumented
assets. The fund would attract millions of investors by promising generous annual
dividends that were far in excess of the returns on its actual portfolio. This
Specified Undertaking of Unit Trust of India functioned under an administrator
appointed by Government of India, outside of SEBI's purview, until it was
eventually liquidated in 2008. The Government asked
the SBI, PNB, BOB and LIC to step in as sponsors of the second part, now
called UTI Mutual Fund (in addition to being sponsors of their own mutual funds)
under SEBI's regulation. As of 30 June 2013, the Indian mutual fund industry
manages assets worth approximately Rs.847, 000 corers.

7
CONCEPT
A Mutual Fund is a trust that pools the savings of a number of investors
who share a common financial goal. The money thus collected is then invested in
capital market instruments such as shares, debentures and other securities. The
income earned through these investments and the capital appreciation realized is
shared by its unit holders in proportion to the number of units owned by them.
Thus, a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of
securities at a relatively low cost. The flow chart below describes broadly the
working of a mutual fund:

8
ADVANTAGES OF MUTUAL FUNDS
The advantages of investing in a Mutual Fund are:
 Professional Management
 Diversification
 Convenient Administration
 Return Potential
 Low Costs
 Liquidity
 Transparency
 Flexibility
 Choice of schemes
 Tax benefits
 Well regulated

10
Different types of mutual fund schemes:
There are a wide variety of Mutual Fund schemes that cater to your needs, whatever your age,
financial position, risk tolerance and return expectation. Whether as the foundation of your
investment programmers or as a supplement. Mutual fund schemes can help you to meet tour
financial goal.
(A) By Structure
Open-Ended Schemes
These do not have a fixed maturity. You deal directly with the Mutual Fund for your investments
and redemptions. The key feature is liquidity. You can conveniently buy and sell your units at
net asset value ("NAV") related prices.
Close-Ended Schemes
Schemes that have a stipulated maturity period (ranging from 2 to 15 years) are called close-
ended schemes. You can invest directly in the scheme at the time of the initial issue and
thereafter you can buy or sell the units of the scheme on the stock exchanges where they are
listed. The market price at the stock exchange could vary from the scheme's NAV on account of
demand and supply situation, unitholders' expectations and other market factors. One of the
characteristics of the close-ended schemes is that they are generally traded at a discount to NAV;
but closer to maturity, the discount narrows.
Some close-ended schemes give you an additional option of selling your units directly to the
Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations ensure that at
least one of the two exit routes are provided to the investor.
Interval Schemes
These combine the features of open-ended and close- ended schemes. They may be traded on the
stock exchange or may be open for sale or redemption during pre-determined intervals at NAV
related prices.
(B) By Investment Objective

11
Growth Schemes
Aim to provide capital appreciation over the medium to long term. These schemes normally
invest a majority of their funds in equities and are willing to bear short- term decline in value for
possible future appreciation.
These schemes are not for investors seeking regular income or needing their money back in the
short-term.
Ideal for:
Income Schemes
Aim to provide regular and steady income to investors. These schemes generally invest in fixed
income securities such as bonds and corporate debentures. Capital appreciation in such schemes
may be limited.
Ideal for:
* Retired people and others with a need for capital stability and regular income.
* Investors who need some income to supplement their earnings.
Balanced Schemes
Aim to provide both growth and income by periodically distributing a part of the income and
capital gains they earn. They invest in both shares and fixed income securities in the proportion
indicated in their offer documents. In a rising stock market, the NAV of these schemes may not
normally keep pace, or fall equally when the market falls.
Ideal for:
What is Net Asset Value (NAV)
Net Asset Value is the market value of the assets of the scheme minus its liabilities. Per unit
NAV is the net asset value of the scheme divided by the number of units outstanding on the
Valuation Date.

12
Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include a sales
load.
Repurchase Price
Is the price at which a close-ended scheme repurchases its units and it may include a back-end
load. This is also called Bid Price.
Redemption Price
Is the price at which open-ended schemes repurchase their units and close-ended schemes
redeem their units on maturity. Such prices are NAV related.
Sales Load
Is a charge collected by a scheme when it sells the units. Also called, 'Front-end' load. Schemes
that do not charge a load are called 'No Load' schemes.
Repurchase or 'Back-end' Load
Is a charge collected by a scheme when it buys back the units from the unit holders.
Indexation
•Under Indexation, you are allowed by law to inflate the cost of your asset by a government
notified inflation factor.
•This factor is called the ‘Cost Inflation Index’, from which the word ‘Indexation’ has been
derived.
•This inflation index is used to artificially inflate your asset price.
•This helps to counter erosion of value in the price of an asset and brings the value of an asset at
par with prevailing market price.

13
SECTOR INFORMATION
In finance and economics, a financial institution is an institution that provides
financial services for its clients or members. One of the most important financial
services provided by a financial institution is acting as a financial intermediary.
Most financial institutions are regulated by the government.
An establishment that focuses on dealing with financial transactions, such as
investments, loans and deposits. Conventionally, financial institutions are
composed of organizations such as banks, trust companies, insurance companies
and investment dealers. Almost everyone has deal with a financial institution on a
regular basis. Everything from depositing money to taking out loans and exchange
currencies must be done through financial institutions.
FUNCTION:
Financial institutions provide services as intermediaries of financial markets.
Broadly speaking, there are three major types of financial institutions:
Depositary institutions – deposit-taking institutions that accept and manage
deposits and make loans, including banks, building societies, credit unions, trust
companies, and mortgage loan companies;
1. Contractual institutions – insurance companies and pension funds; and
2. Investment institutions – investment banks, underwriters, brokerage firms.
Some experts see a trend toward homogenisation of financial institutions, meaning
a tendency to invest in similar areas and have similar business strategies. A
consequence of this might be fewer banks serving specific target groups, for
example small-scale producers could be under served.

14
STANDARD SETTLEMENTINSTRUCTIONS:
Standard Settlement Instructions (SSIs) are the agreements between two financial
institutions which fix the receiving agents of each counterparty in ordinary trades
of some type. These agreements allow traders to make faster trades since the time
used to settle the receiving agents is conserved. Limiting the trader to an SSI also
lowers the likelihood of a fraud. SSIs are used by financial institutions to facilitate
fast and accurate cross-border payments
India‟s financial sector is diversified and expanding rapidly. It comprises
commercial banks, insurance companies, non-banking financial companies,
cooperatives, pensions funds, mutual funds and other smaller financial entities.
CURRENT REGULATORS OF THE FINANCIAL SYSTEM
The regulation and supervision of the financial system in India is carried out by
different regulatory authorities. The Reserve Bank of India (RBI) regulates and
supervises the major part of the financial system. The supervisory role of the RBI
covers commercial banks, urban cooperative banks (UCBs), some financial
institutions and non-banking finance companies (NBFCs). Some of the financial
institutions, in turn, regulate or supervise other institutions in the financial sector,
for instance, Regional Rural Banks and the Co-operative banks are supervised by
National Bank for Agriculture and Rural Development (NABARD); and housing
finance companies by National Housing Bank(NHB).
TOP 10 FINANCIAL SERVICES COMPANIES IN INDIA
The financial system of a country has a great impact on the economy with
financial services companies responsible for the robust economic growth. There
has to be a direct link between the regulatory institutions and the intermediary
institutions while determining the financial system of a country.
Financial services provided by finance companies include insurance, housing

15
financing, mutual funds, credit reporting, debt collection, stock broking, portfolio
management, and investment advisory.
1. SBI Capital Markets Limited
2. Bajaj Capital Limited
3. DSP Merrill Lynch Limited
4. Birla Global Finance Limited
5. Housing Development Finance Corporation
6. PNB Housing Finance Limited
7. ICICI Group
8. LIC Finance Limited
9. L & T Finance Limited
10. Karvy Group

16
Background of the topic:-
The systematic investment is most important part for any
person. In that how we can give direction about investment through repot it was issue. We know
there are so many so many financial products in the market. It is better to choose any of them and
giving brief information about that which is more beneficial to common people to get know about it.
With the so many options we choose mutual fund as investment option. It is most popular in financial
product available in market. Actually mutual fund creates for those people who do not have
knowledge about market don’t have time to keep track of it and also lack of money. It is a facility to
this people from any financial institution in which their fund manger pull their investor money in to
market they invested money behalf of them

17
COMPANY INFORMATION:-
ICICI ( Industrial credit and investment
corporation of India) is an Indian multinational banking and financial services company headquartered
in Mumbai, Maharashtra, India. As of 2014, it is the second largest bank in India in terms of assets
and market capitalization. It offers a wide range of banking products and financial services for corporate
and retail customers through a variety of delivery channels and specialized subsidiaries in the areas
of investment banking, life, non-life insurance, venture capital and asset management. The Bank has a
network of 4,050 branches and 12,642 ATMs in India, and has a presence in 17 countries including India.
ICICI Bank is one of the Big Four banks of India, along with State Bank of India, Punjab National
Bank and Bank of Baroda. The bank has subsidiaries in the United Kingdom and Canada; branches in
United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar, Dubai International Finance Centre and
China; and representative offices in United Arab Emirates, South Africa, Bangladesh, Malaysia and
Indonesia.The company'sUK
Mr. M. K. Sharma
Chairman, ICICI Bank Limited Ms. Chanda Kochhar
Managing Director and Chief Executive
Officer, ICICI Bank Limited

18
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 launched internet banking
operations in 1998. ICICI's shareholding in ICICI Bank was reduced to 46 percent, through a
public offering of shares in India in 1998, followed by an equity offering in the form
of American Depositary Receipts on the NYSE in 2000. [16] ICICI Bank acquired the Bank of
Madura Limited in an all-stock deal in 2001 and sold additional stakes to institutional investors
during 2001-02. In the 1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services group, offering a wide
variety of products and services, both directly and through a number of subsidiaries and affiliates
like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial
institution from non-Japan Asia to be listed on the NYSE. In 2000, ICICI Bank became the first
Indian bank to list on the New York Stock Exchange with its five million American depository
shares issue generating a demand book 13 times the offer size. In October 2001, the Boards of
Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly owned
retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services
Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank
in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002 and by the High
Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. In 2008, following
the 2008 financial crisis, customers rushed to ICICI ATMs and branches in some locations due to
rumors of adverse financial position of ICICI Bank. The Reserve Bank of India issued a
clarification on the financial strength of ICICI Bank to dispel the rumors.

19
Role in Indian financial infrastructure
The bank has contributed to the set-up of a number of Indian institutions to establish financial
infrastructure in the country over the years:
 National Stock Exchange - The National Stock Exchange was promoted by India's leading
financial institutions (including ICICI Ltd.) in 1992 on behalf of the Government of India
with the objective of establishing a nationwide trading facility for equities, debt instruments
and hybrids, by ensuring equal access to investors all over the country through an
appropriate communication network.[30]
 Credit Rating Information Services of India Limited (CRISIL) - In 1987, ICICI Ltd along
with UTI set up CRISIL as India's first professional credit rating agency. CRISIL offers a
comprehensive range of integrated products and service offerings which include credit
ratings, capital market information, industry analysis and detailed reports.[31]
 National Commodities and Derivatives Exchange Limited - NCDEX is an online multi-
commodity exchange, set up in 2003, by ICICI Bank Ltd, LIC, NABARD, NSE, Canara
Bank, CRISIL, Goldman Sachs, Indian Farmers Fertiliser Cooperative Limited (IFFCO)
and Punjab National Bank.[32]
 Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has facilitated setting up
of "FINO Cross Link to Case Link Study" in 2006, as a company that would provide
technology solutions and services to reach the underserved and under banked population of
the country. Using technologies like smart cards, biometrics and a basket of support services,
FINO enables financial institutions to conceptualize, develop and operationalise projects to
support sector initiatives in microfinance and livelihoods.
 Entrepreneurship Development Institute of India - Entrepreneurship Development Institute
of India (EDII), an autonomous body and not-for-profit society, was set up in 1983, by the
erstwhile apex financial institutions like IDBI, ICICI, IFCI and SBI with the support of
the Government of Gujarat as a national resource organization committed to
entrepreneurship development, education, training and research.
 North Eastern Development Finance Corporation - North Eastern Development Finance
Corporation (NEDFI) was promoted by national level financial institutions like ICICI Ltd in
1995 at Guwahati, Assam for the development of industries, infrastructure, animal

20
husbandry, agric-horticulture plantation, medicinal plants, sericulture, aquaculture, poultry
and dairy in the North Eastern states of India. NEDFI is the premier financial and
development institution for the North East region.
 Asset Reconstruction Company India Limited - Following the enactment of the
Securitization Act in 2002, ICICI Bank, together with other institutions, set up Asset
Reconstruction Company India Limited (ARCIL) in 2003, to create a facilitative
environment for the resolution of distressed debt in India. ARCIL was established to acquire
non-performing assets (NPAs) from financial institutions and banks with a view to enhance
the management of these assets and help in the maximization of recovery. This would relieve
institutions and banks from the burden of pursuing NPAs, and allow them to focus on core
banking activities.
 Credit Information Bureau of India Limited - ICICI Bank has also helped in setting up Credit
Information Bureau of India Limited (CIBIL), India's first national credit bureau in 2000.
CIBIL provides a repository of information (which contains the credit history of commercial
and consumer borrowers) to its members in the form of credit information reports. The
members of CIBIL include banks, financial institutions, state financial corporations, non-
banking financial companies, housing finance companies and credit card companies.
 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank has indirectly
invested in Institutional Investor Advisory Services, through ICICI Prudential Life Insurance
Company, in IiAS. IiAS is a voting advisory firm aka proxy firm, dedicated to providing
participants in the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300 companies.

21
Subsidiaries
Domestic
 ICICI Prudential Life Insurance Company Limited
 ICICI Lombard General Insurance Company Limited
 ICICI Prudential Asset Management Company Limited
 ICICI Prudential Trust Limited
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Venture Funds Management Company Limited
 ICICI Home Finance Company Limited
 ICICI Investment Management Company Limited
 ICICI Trusteeship Services Limited
 ICICI Prudential Pension Funds Management Company Limited

International
 ICICI Bank USA
 ICICI Bank UK PLC
 ICICI Bank Canada
 ICICI Bank Eurasia Limited Liability Company
 ICICI Securities Holdings Inc.
 ICICI Securities Inc.
 ICICI International Limited
Awards and Achievements
2003

22
 "The Asian Banker Excellence in Retail Financial Services Program" by The Asian Banker
2004
 Best Bank in India Award presented by Euro money Magazine
2006
 Bank of the Year 2006 India by the Banker
2007
 ICICI Bank has been conferred the Euro money Award 2007 for the Best Bank in the Asia-
Pacific Region
 ICICI Bank wins the Excellence in Remittance Business award by The Asian Banker[56]
 ICICI Bank was got the awards for 'Best Transaction Bank' in India, 'Best Domestic Bank' in
India, 'Best follow-on offering'(US$4.94 billion), 'Best Investment Grade Bond'(US$2
billion, three-tranche bonds), Best Syndicated Loan Managers by Asset.
2009
 ICICI Bank bags the "Best bank in SME financing (Private Sector)" at the Dun & Bradstreet
Banking awards
 ICICI Bank won the Best Banking Security Systems Project Award and Best E-Banking
Project Implementation Award by The Asian Banker.
2010
 ICICI Bank won the Best Banking Security System by The Asian Banker.
2011
 ICICI Bank is the only Indian brand to figure in the Brands Top 100 Most Valuable Global
Brands Report, second year in a row
 ICICI Bank won the 'Best CRM Project' and 'Best Banking Security Systems' by The Asian
Banker.
2012

23
 Airtel, ICICI among 'top 100 global brands
 ICICI Bank received the Golden Peacock Innovative Product / Service Award.
 ICICI Bank received the Dataquest Technology Innovation Awards 2012 for Data center
migration by Dataquest.]
 ICICI Bank was conferred the Best Performance Award for Self Help Group (SHG) Bank
Linkage Programmed in NABARD's State Level Awards announced by their Maharashtra
Regional Office. The Bank received the first prize for the year 2010–11 in the Private Sector
Bank category and 2nd runner up for the year 2011–12 in the Commercial Bank category.
2013
 ICICI Bank has been adjudged winner at the Express IT Innovation Award under the Large
Enterprise category
 ICICI Bank won the RMAI received the "Gram Samvad", Service for Low cost/Small budget
marketing initiative Award by Rural Marketing Association of India (RMAI).
 ICICI bank won the 'Next Generation Banking solution' award by talent.
 ICICI bank won the Best Domestic Trade Finance Bank and Best Financial Supply Chain
Project Award in India by The Asian Banker
 ICICI Bank won the honors of the Medici Innovation Hall of Fame Award, instituted by The
Medici Institute in collaboration with the Medici Group, USA.
2014
 According to the Brand Trust Report 2014, ICICI Bank was ranked 28th among India's most
trusted brands, a research conducted by Trust Research Advisory
 ICICI Bank was ranked second at the 'National Energy Conservation Award 2014' under the
office buildings (less than 10 lakh kWh/year consumption) category.
 ICICI Bank was fifth in the world and second in India on the 'Top Companies for Leaders' in
a study conducted by Aon Hewitt
 ICICI bank won the Best Private Sector Bank - Global Business Development by Polaris
Financial Technology Banking Awards 2014.

24
 IDBRT awarded ICICI for 'Best Bank Award for Business Intelligence Initiatives among
Large Banks' and 'Best Bank Award for Social Media and Mobile Banking Among Large
Banks'.
 ICICI bank was awarded the Certificate of Recognition as one of the Top 5 Companies in
Corporate Governance in the 14th The Institute of Company Secretaries of India National
Awards for Corporate Governance. They were honored by Arun Jaitley.
 ICICI Bank has been honored as The Best Service Provider - Risk Management, India at The
Asset Triple A Transaction Banking, Treasury, Trade and Risk Management Awards 2014.
 ICICI Bank was awarded the 'Best Retail Bank in India', 'Best Microfinance Business' and
'Best Retail Banking Branch Innovation' under the 'Excellence in Retail Financial Services
awards 2014' and Technology Implementation Award for Lending Platform Implementation
by The Asian Banker.
2015
 ICICI Bank won an award in the BFSI Leadership Summit & Awards in the 'Best Phone
Banking for End-users’ category
 ICICI Bank won in six categories and was the first runner-up in one category among Private
Sector Banks at IBA Banking Technology Awards, 2015. The bank was declared winner in
the six categories of Best Technology Bank of the Year, Best use of Data, Best Risk
Management Initiatives, Best use of Technology in Training, Human Resources and e-
Learning initiatives, Best Financial Inclusion Initiative and Best use of Digital and Channels
Technology. ICICI Bank was the first runner-up in Best use of Technology to Enhance
Customer Experience
 ICICI Bank has been declared as the first runner up at Outlook Money Awards 2015 in the
category of ‘Best Bank’
 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’ and ‘Best
Customer Risk Management Initiative’ awards given by The Asian Banker.

25
Social responsibility programmes for elementary Education
 Read to Lead Phase I: Read to Lead is an initiative of ICICI Bank to facilitate access to
elementary education for underprivileged children in the age group of 3–14 years including
girls and tribal children from the remote rural areas. The Read to Lead initiative supports
partner NGOs to design and implement programmers that mobilize parent and community
involvement in education, strengthen schools and enable children to enter and complete
formal elementary education. Read to lead has reached out to 100,000 children across 14
states of Andhra Pradesh, Bihar, Delhi, Gujarat, Haryana, Jharkhand, Karnataka,
Maharashtra, Orissa, Rajasthan, Tamil Nadu, Tripura, Uttar Pradesh and West Bengal.
 Read to Lead Phase II: In Phase II of the Read to Lead programmed, ICICI Bank has
supported the establishment of 63 libraries that will reach out to approximately 7,200
children in the rural areas of Jagdalpur block of Bestir district in Chhattisgarh. The
programmed includes building libraries, sourcing books and conducting various interactive
activities to make the library a dynamic centre for learning.

26
Literature Review:-
MUTUAL FUNDS IN INDIA – ISSUES, OPPORTUNITIES AND CHALLENGES
MURALIDHAR DUNNA
The Indian mutual fund industry is one of the fastest
growing sectors in the Indian capital and financial markets. The mutual fund industry in
India has seen dramatic improvements in quantity as well as quality of product and service
offerings in recent years. The concept of mutual funds was introduced in India with the
formation of Unit Trust of India in 1963. The first scheme launched by UTI was the now
infamous Unit Scheme 64 in 1964. UTI continued to be the sole mutual fund until 1987,
when some public sector banks and Life Insurance Corporation of India and General
Insurance Corporation of India set up mutual funds. It was only in 1993 that private players
were allowed to open shops in the country. Today, 32 mutual funds collectively manage Rs
6713575.19 cr under hundreds of schemes. The industry has steadily grown over the decade.
For example, before the public sector mutual funds entry, UTI was managing around Rs
6,700 crore on its own. Public sector mutual funds also helped accelerate the growth of
Assets Under Management. UTI and its public sector counterparts were managing around Rs
47,000 crore when Kothari Pioneer, the first private sector mutual fund, set up shop in 1993.
Before the US 64 fiasco, there were 33 mutual funds with total assets of Rs 1, 21,805 crore
as on January 2003. The UTI was way ahead of other mutual funds with Rs 44,541 crore
assets under management. The industry overall has performed well over the years. Of course,
there were a few funds houses, which disappointed investors. However, overall performance
has been good. However, lack of awareness still impedes the growth of the mutual fund
industry. Unlike developed countries, most of the household savings still go to bank deposits
in India. In the year 2004, the mutual fund industry in India was worth Rs 1,50,537 crores.
The mutual fund industry is expected to grow at a rate of 13.4% over the next 10 years.
Mutual funds assets under management grew by 96% between the end of 1997 and June
2003 and as a result it rose from 8% of GDP to 15%. The industry has grown in size and

27
manages total assets of more than $30351 million. Of the various sectors, the private sector
accounts for nearly 91% of the resources mobilized showing their overwhelming dominance.
in the market. Individuals constitute 98.04% of the total number of investors and contribute
US $12062 million, which is 55.16% of the net assets under management.
FUTURE AND GROWTH OF MUTUAL FUNDS IN INDIA:-
There is a huge scope in the future for the expansion of the mutual funds industry.
A number of foreign based assets management companies are venturing into Indian
markets.
The Securities Exchange Board of India has allowed the introduction of commodity mutual
funds.
The emphasis is being given on the effective corporate governance of Mutual Funds.
The Mutual funds in India has the scope of penetrating into the rural and semi urban areas.
Financial planners are introduced into the market, which would provide the people with
better financial planning.
OPPORTUNITIES OF MUTUAL FUND INDUSTRY:-
In any industry, innovation and improvements happen when the rules are changed. Large-
scale environmental changes such as those that have taken place in the last three years must
lead to innovation and evolution.
Newer leaner operating structures will have to evolve which will entail the use of
technology that helps an AMC (Asset Management Company) reach the retail end user with
solutions that enable transactions via platforms such as mobile or online platforms. This will
not only give greater direct access but will also help AMCs to better understand investor
behavior and create the appropriate environment and products to move towards long and
healthy relationships with the investors.

28
As the industry evolves, outsourcing an increasing number of functions to reduce the head-
count and increase efficiency might be the norm. All aspects of operating costs must be
examined for efficiencies.
A rational look at schemes of an AMC by their management teams is needed to better
understand the mix, the cost and the benefits – to the investors as well as to the AMCs.
MUTUAL FUND- EMERGING CHALLENGES:-
 GROWTH VERSUS GOVERNANCE – A RIGHT MIX
 ADMINISTRATION AND DISTRIBUTION
 INVESTOR EDUCATION- A DRIVING FORCE ON FINANCIAL PLANNING
 THE TECHNOLOGICAL BACKBONE
 DIMINISHING TALENT POOL
 PRESSURES ON MARGINS
 CONSOLIDATION IN THE INDUSTRY
 INNOVATION AND PRODUCT DIFFERENTIATION
 INCREASING TREND ON OUTSOURCING

29
PROBLEMS FACED
Problems are nothing but challenges faced by me while doing research. These are
the challenges faced by me to arrive at final solution.
These problems/challenges kept me moving ahead in order to arrive at my desired
result.
Following are few challenges faced by me during my project. They are:
1. Validity of the numbers provided by ICICI Securities: many numbers were wrong
numbers or used by third party or invalid, which restricted me to reach to those
clients.
2. Getting appointments: This was one of the great challenges faced by me. Making
people understand the purpose of my call and convincing them to give
appointment was great challenge for me.
3. Adjusting the time: after getting 2 or more appointments for the same day, the
next challenge was to adjust the timings of meetings that it should not clash.
Need of the study:-
 The need of study arises for learning the variables available that distinguish the mutual
fund and customers mind set towards mutual funds.
 To know the risk & return associated with mutual fund.
 To choose best mutual investment of ICICI.
 To know psychology of common people about mutual.
 Finding out risk factor and return potential of the mutual fund.

30
 To know what is market image of ICICI Company in market.
Scope of the study:-
 To make people aware about concept of mutual fund.
 Understanding client’s reasons behind not making any transactions through ICICI
securities.
 Understanding the fundamentals of mutual fund and how does it operate, which can
help in improving knowledge in terms of finance sector.
 To provide information regarding advantages and demerits of mutual fund.
 To provide information regarding types of mutual fund which is beneficial for whom?
Objectives of the study:-
 The objective of the research is to study and analyze the awareness level of investors of
mutual funds.
 To measure the satisfaction level of investors regarding mutual funds.
 An attempt has been made to measure various variables playing in the minds of investors
in terms of safety, liquidity, service, returns, and tax saving
 To get insight knowledge about mutual funds
 To know the mutual funds performance levels in the present market.
 To analyze the concept and parameters of mutual fund.
 To study and analyze the awareness level regarding mutual fund among clients
 To understand the current market scenario regarding mutual fund.
 To know how many people are satisfied by their investment?
 To know people behavior regarding risk factor involved in mutual fund.
LIMITATION OF THE STUDY
Our job had a limitation of only meeting clients and
making them aware about mutual fund by showing presentation. However, some clients

31
were interested in knowing more about different schemes/ options available regarding
mutual fund, but we had no authority to suggest anything. Reason being we did not have in
depth knowledge about the same. According to me this was disadvantage, as we used to
inform our relationship managers and used to give them contact details of the client. But
time between informing RM and getting connected to the client used to take little time
which can change client’s decision and may affect the business of the company.

32
Chapter – 3
RESEARCH
METHODOLOGY

33
ResearchMethodology:-
Search refers to search for knowledge. One can also define research as a scientific and
systematic search for pertinent information on a specific topic. It is an art of scientific
investigation. It is the way to systematically solve a problem. The methodology adopted in this
study is explained below:-
 Research Design
Problem Defining:
In a competitive situation with multiple mutual funds operating in Indian market, it is necessary
to know about the performance of different mutual funds as the performance of mutual fund
decides about the future of Mutual Fund Company. In this study my focus is upon the customers
mind set and create awareness on mutual funds of ICICI. This is my problem to be studied for
research.
Literature Survey:
I have used newspapers, magazines related to business & finance & apart from websites.
Type of research:
The research is qualitative & descriptive in nature. Qualitative research is that talk about the
quality of the subject to be researched and Descriptive research is one that describes things as
exists in present.
Data collection Design:
1. Sources of data =
Primary Sources – I have used questionnaire as primary source for collecting data for my study.
Secondary sources – I had collected my secondary data from websites &
journals.

34
II. Sampling =
It represents whole population. It is the processes of choosing a sample from whole population .I
have choose a sample of high class & middle class people who have invested in mutual funds as
a sample.
III. Tools =
I have used some charts (Pie chart, column chart, cylinder chart, cone chart) and hypothesis tests
(chi-square one sample T- test etc.)
IV. Sampling Size =
It represents that how many candidates you’ve chosen to be filled up your questionnaire or
candidates upon whom you can study. I had chosen sample of 130 customers.

35
Research Methodology:-
Primary data:
 This method was adopted because it helps to procuring data and detail information from
the respondents. The collection of data by filling questionnaires, directly talking to the
respondents
Secondary data:
 The secondary data also used in this project, which include various written documents
and other related information about the customer details in their pivotal document-
software used by ICICI DIRECT.

36
Chapter – 4
DATA PROCESSING AND
ANALYSIS

37
ICICI DIRECT CUSTOMER/CLIENT PROFILE
The objective of this project was to make ICICI
Securities existing clients aware about Mutual Funds and make them aware about
the new happenings taking place in the company where they have their own
Demit/Trading account.
ICICI Securities mapped clients to us were those clients who have not made any
transactions for many years. So to attract these inactive customers and to make
them understand new changes in the online portal of the company, ICICI
Securities took this initiative of creating awareness among these clients.
Basic profile of the client- Account in ICICI Securities but Inactive.
Here we can state that the need of the client was to have an in depth knowledge
of Mutual Fund and alterations took place in the online portal of ICICI Securities.
It explained how to trade online without visiting the branch.
Behavioral Characteristic of the client- Willingness to help students,
understanding the changes took place and improving knowledge.
I have visited 130 clients in my summer internship. So entire customer profile is based on
these 130 clients only.
Now let’s go through the customer profile to which I personally met and let’s analyze it on the
basis of following

38
Gender:-
 From above data, we can clearly assume that males are more interested in such
kind of financial dealings compared to females.
 In India most of the family men use to earn. That is reason male are more involve
in that.
 Buying decision of the client is majorly taken by males.
 The 8% female are all working. They earn and invest their money.
 92% clients are males and 8% are females.
Male
92%
Female
8%
Gender

39
Age:-
 From above graph, it is clear that people from age group 30-40 and 40-50 are
more interested in investments.
 While survey I come to know that up to 30 age people are looking for the long
tram investment. 30 to till 50 people are already did their investment in their
respective scheme and last old age people all most of them are not able to do any
investment.
 People up to 30 are taking initiative and they should start investing more.
30
68
32
30-40 40-50 More than 50
Age

40
Income:-
 As per data given above, most of the client’s financial position is stable and they
come under the category of 2 lac to lac and 5 lac to 10 lac they are main target
market for the company.
 Every scheme is differentiate on basis of finance. Every scheme having their
different target market.
 Investment depends on client’s income.
 More the income, more the investment.
up to 2 lac
2 lac to 5 lac
5 lac to 10 lac
more than 10 lac
24
53
43
10
Income
Income

41
What is your DESIGNATION?
 From the above pie chart, we can say that people who are interested in financial
securities and investments are employed people who want to invest their hard
earned money in right options.
 Most of the business man’s money are fluctuate they have not any fixed
investment planning. They prefer invest their money in equity or in their own
business.
 It is good to see that even housewife is taking interest in understanding the
fundamentals of financial market.
Business men, 30
Employee, 62
House wife, 12
Retired , 26

42
In which Investment scheme do you prefer to invest?
 This is some investment option available in the market. people prefer their
investment on basis of finance.
 Most of the people prefer FD because they want safe investment. That is
why they also invest in insurance.
 Equity is only for those who know very well market and able to invest and
have time to keep track of it.
 Bond is not that much famous investment plan.
Equity
13%
MF
21%
Isurance
25%Bond
7%
FD
34%
Investment

43
Are you satisfied with service of ICICI?
 It very important to make consumer satisfy because if they are not satisfy specially when
you sell your financial product people will not trust you.
 ICICI is one of the top privet sector organizations in market. it have very good brand
image we can see more than 50% people are satisfy with ICICI
 Few clients, I met with them they was dissatisfy because of poor service and bad
experience.
Highly Satisfied Satisfied Neutral Dissatisfied Highly
Dissatisfied
19
50
30
17
5

45
1. Rate the demo on the scale of 1 to 5. (5 being highest)
Out of 130 clients, 30 clients gave rating 5 to the demo showed by me to them. It covered basic
things related to mutual fund. Again they made it easy for the client to trade online through
ICICI direct.com so to direct client how to trade online, they explained each and every step of
using the site effectively. (From selection of fund till generation of tax statement) 47 clients rated
the demo 4. So overall, this initiative of ICICI Securities was liked by many people
1 2 3 4 5
2
16
35
47
30
Ratings
Ratings

46
1. Are you planning to invest in Mutual Fund?
People have started focusing on investment options. They
have started taking interest in financial securities. Though there are many options
available in the market related to investment, 53% of surveyed clients are
interested in in investing in mutual funds. Rest 47% is little scared to invest in
mutual fund thinking of losing their money. However, it is possible to make them
more aware about mutual fund and make them invest in the same to secure their
future.
YES
53%
NO
47%

47
Any other feedback/suggestion?
 It was a nice explanation, I will surely invest in mutual fund in coming days.
 Nice details provided by the executive since i already suffered loss in MF so
currently not planning to invest in MF. But nice job done and i will suggest my
friends to invest in MF.
 The presentation good. and more getting know about MF
 I have already invested in MF
 The demit account for the long term customers should be made free as the
customer is holding the account with icici for a longer time. Regards
 The language is good, flow is good, tuning is good.
 It’s very primitive level presentation
 Small pamphlets with wide circulation could be more effective than demo since
demo cannot reach all the people
 Rather than explaining basic things to the client, make changes in the
presentation and make it more informative so that clients can feel that
there is some value addition which will in turn add the value to their
money.
 Information regarding client stock holding should be provided adequately.
 Up gradation of site ICICIdirect.com should be done.
 It is good strategy to finding out the target for the company but for the
customer in the presentation there nothing good to get.
 The service provided by ICICI Securities is inconsistent and inadequate.
 Follow ups taken by relationship managers are very inconsistent.
Sometime they don’t call for months and sometimes they call repeatedly,
whenever client get call from RM then that RM is new every time.
.

49
 To conclude we can say that mutual fund is a very much profitable tool for investment
because of its low cost of acquiring fund, tax benefit, and diversification of profits &
reduction of risk. Many investors who have invested in mutual fund have invested with
ICICI .There is also an affect of age on mutual fund investors like; old people & widows
want regular returns than capital appreciation. Companies can adopt new techniques to
attract more & more investors. In my study the objective of the research is to study and
analyze the awareness level of investors of mutual funds.
 Mutual fund is a strong investment tool where in fund manager manages our money and
puts it in right stock which in future can give us high returns on investment.
 To conclude we can say mutual fund is a best investment vehicle for old & widow, as
well as to those who want regular returns on their investment.
 Mutual fund has various options which have its own different characteristic which
makes investor to invest his money in those options as per his need.
 Coming to ICICIdirect.com, it is one of the best user friendly website which makes
client to invest in it without any difficulty.
 It directs client in all areas of trading right from fund selection till generation of tax
statement.
 To measure the satisfaction level of investors regarding mutual funds.
 An attempt has been made to measure various variables playing in the minds of investors
in terms of safety, liquidity, service, returns, and tax saving
 To get insight knowledge about mutual funds
 To know the mutual funds performance levels in the present market
 It directs client in all areas of trading right from fund selection till generation of tax
statement.

50
Chapter – 7
RECOMANDATION

51
 More young people are likely to involved in financial activities. This is an opportunity
for mutual funds houses to attract these people.
 Knowledge regarding Mutual Fund through various sources, because many people have
heard about it but don’t know how it works!?
 Posters, banners or other promotional activities are rarely seenin this market
 The company should organize Free seminars to give information about Mutual Fund and
should distribute brochures having detail of schemes of Mutual Fund
 ICICI Securities should charge minimum amount for services provided which can
help in retaining the existing clients.
 As clients have complaint that company’s follow ups are inconsistent. Hence, ICICI
Securities should schedule follow ups with proper intervals.
 These pamphlets should not only be restricted to clients but to as many people they
can.

53
Websites:
 https://en.wikipedia.org/wiki/Mutual_fund
 https://en.wikipedia.org/wiki/Financial_institution
 http://www.investopedia.com/terms/f/financialinstitution.asp
 http://business.mapsofindia.com/finance/top-10-financial-services-companies-in-
india.html
 http://www.icicisecurities.com/
 http://content.icicidirect.com/newsiteContent/ProductService/Overview.asp
 http://blog.clientheartbeat.com/why-customer-satisfaction-is-important/

summer project of ICICI on MF

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