an analysis of mutual funds at icici securities ltd
TRANSCRIPT
SUMMER INTERNSHIP AT
PROJECT REPORT ON
“AN ANALYSIS OF MUTUAL FUNDS AWARENESS CAMPAIGN INITIATED BY ICICI SECURITIES LTD”
Submitted By:
Nitin A.P Singh
Summer intern at ICICI SECURITIES LTD,
From: Thakur Institute of Management Studies and Research.
DECLARATION
I hereby declare that the project report entitled, “AN ANALYSIS OF MUTUAL FUNDS
AWARENESS CAMPAIGN INITIATED BY ICICI SECURITIES LTD” submitted to
Thakur Institute of Management Studies & Research (TIMSR), Mumbai, is a record of the
original work done by me under the guidance of Prof. Shradha Lunia, and this project work is
submitted in partial fulfillment of the requirements for the degree of Masters in Management
Studies. The results embodied in this study have not been submitted to any other Institute or
University for the award of any other degree or diploma.
Place: Mumbai Nitin A.P Singh
Date: 7thAug 2015 MMS-Finance
Roll No: 94
ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced and without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I owe my deepest gratitude.
It gives me immense pleasure in presenting this project report on “An Analysis of Mutual
Funds awareness campaign initiated by ICICI Securities”. It has been my privilege to
have a team of project guide who have assisted me from the commencement of this project.
The success of this project is a result of sheer hard work, and determination put in by me with
the help of my project guide. I hereby take this opportunity to add a special note of thanks for
Prof. Shradha Luniya, who undertook to act as my mentor despite her many other
professional commitments. Her wisdom, knowledge, and commitment to the highest
standards inspired and motivated me. Without her insight, support, and energy, this project
wouldn't have kick-started and neither would have reached fruitfulness.
I convey my heart full thanks to the staff members of ICICI Securities, for their help and
corporation.
I am very thankful to my guide Mr. Bir Bharat Mishra for his full support in completing
this project work.
Last but not least, I would like to thank my family and Friends for their full cooperation &
continuous support during the course of this assignment.
The project is dedicated to all those people, who helped me while doing this project.
Nitin A.P Singh
(Thakur Institute of Management Studies & Research)
CHAPTER. 1: EXECUTIVE SUMMERY
A mutual fund is a scheme in which several people invest their money for a common
financial cause. The collected money invests in the capital market and the money, which they
earned, is divided based on the number of units, which they hold. The mutual fund industry
started in India in a small way with the UTI Act creating what was effectively a small savings
division within the RBI. Public sector banks and financial institutions were allowed to float
mutual funds and their success emboldened the government to allow the private sector to
foray into this area.
Mutual funds have emerged as a strong financial intermediary and are the fastest growing
segment of the financial services sector in India. Mutual funds play a very significant role in
channelizing the savings of millions of individuals. A mutual fund is the most suitable
investment for the common person as it offers an opportunity to invest in a diversified,
professionally managed portfolio at a relatively low cost. Mutual Fund has not only
contributed to India’s growth story but has also helped families tap into success of Indian
industry. As information and awareness is rising more & more people are enjoying the
benefits of investing in Mutual Funds.
This project is regarding the mutual funds awareness program undertaken by the ICICI
Securities Ltd. 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. The company has undertaken the mutual
funds awareness program called “Mutual Funds Simplified”
Duration of the project was two months. During this period, the researcher went on to meet
the existing customers in their respective places as they mentioned in phone or customers
who were coming at ICICI direct branch of the ICICI Securities and took their feedback
based on the awareness video and demonstration regarding mutual funds and its online
investment through ICICIDirect.com shown to them during the meeting. Also, at the time of
induction program conducted by ICICI Securities, researcher learnt more about the mutual
funds. During the internship program the researcher came to know that there are many people
using the online mode of investing into different securities. But, at the same time, not many
people are aware about the online investment in mutual funds.
TABLE OF CONTENTS
Page No.
CHAPTER 2 INTRODUCTION
2.1 Introduction to the Topic........................................... 02
2.2 Introduction to the Industry....................................... 11
2.3 Introduction to the Company..................................... 15
2.4 Introduction to the Project......................................... 19
CHAPTER 3 LITERATURE REVIEW………………………………...25
CHAPTER 4 STUDY/PROJECT DETAILS
4.1 Need for the study…………….................................26
4.2 Objective of the study............................................... 26
4.3 Study Methodology.................................................. 27
4.4 Study Limitations.......................................................28
CHAPTER 5 DATA PROCESSING AND ANALYSIS..........................29
CHAPTER 6 OBSERVATION, CONCLUSIONS & RECOMMENDATIONS
6.1 Findings….……………………………………….... .36
6.2 Observation………………………………………….37
6.3 Conclusions.................................................................38
6.4 Suggestion………..................................................... .39
6.5 Learning from the internship………………………. 40
6.6 Contribution to the organization…………………… 41
6.7 Bibliography………………………………………... 42
6.8 Annexure……………………………………….........43
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LIST OF TABLES:
Page No.
Table 1: Number of UTI Schemes 09
Table 2: Rating of Demo 32
Table 3: Number of people going invest in Mutual fund 33
LIST OF FIGURES
Page No.
Figure 1: Concept of Mutual Fund…………………………….......... 03
Figure 2: Total number of responses………………………… 32
Figure 3: Rating of the demo……………………………………… 33
Figure 4: Number of people going invest in Mutual fund…………… 34
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CHAPTER 2: INTRODUCTION
2.1 INTRODUCTION TO THE TOPIC
WHAT IS MEAN BY MUTUAL FUND?
Mutual funds are pools of money that are managed by an investment company. They offer
investors a variety of goals, depending on the fund and its investment charter. Some funds,
for example, seek to generate income on a regular basis. Others seek to preserve an investor's
money. Still others seek to invest in companies that are growing at a rapid pace. Funds can
impose a sales charge, or load, on investors when they buy or sell shares. Many funds these
days are no load and impose no sales charge. Mutual funds are investment companies
regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.
CONCEPT OF MUTUAL FUNDS
Mutual funds are institutions that collect money from several sources - individuals or
institutions by issuing 'units', invest them on their behalf with predetermined investment
objectives and manage the same all for a fee. They invest the money across a range of
financial instruments falling into two broad categories – equity and debt. Individual people
and institutions no doubt, can and do invest in equity and debt instruments by themselves but
this requires time and skill on both of which there are constraints. Mutual funds emerged as
professional financial intermediaries bridging the time and skill constraint. They have a team
of skilled people who identify the right stocks and debt instruments and construct a portfolio
that promises to deliver the best possible 'constrained' returns at the minimum possible cost.
In effect, it involves outsourcing the management of money. More explicitly, the benefits of
investing in equities and debt instruments are supposedly much better if done through mutual
funds. This is because of the following reasons: Firstly, fund managers are more skilled. They
are trained to identify the best investment options and to assess the portfolio on a continual
basis; secondly, they are able to invest in a diversified portfolio consisting of 15-20 different
stocks or bonds or a combination of them. For an individual such diversification reduces the
risk but can demand a lot of effort and cost. Each purchase or sale invites a cost in terms of
brokerage or transactional charges such as demat account fees in India. The need to possibly
sell 'poor' stocks/bonds and buy 'good' stocks/bonds demands constant tracking of news and
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performance of each company they have invested in. Mutual funds are able to maintain and
track a diversified portfolio on a constant basis with lesser costs. This is because of the
pecuniary economies that they enjoy when it comes to trading and other transaction costs;
thirdly, funds also provide good liquidity. An investor can sell her/his mutual fund
investments and 17 receive payment on the same day with minimal transaction costs as
compared to dealing with individual securities, this totals to superior portfolio returns with
minimal cost and better liquidity.
This can be represented with the following flow chart:
WHY SELECT MUTUAL FUNDS ?
The risk return trade-off indicates that if investor is willing to take higher risk then correspondingly he can expect higher returns and vice-versa if he pertains to lower risk instruments, which would be satisfied by lower returns. For example, if an investors opt for bank FD, which provide moderate return with minimal risk. But as he moves ahead 10 invest in capital protected funds and the profit-bonds that gives us more return which is slightly higher as compared to the bank deposits but the risk involved also increases in the same proportion.
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Thus investors choose mutual funds as their primary means of investing, as Mutual funds provide professional management, diversification, convenience and liquidity.
That doesn't mean mutual fund investments risk free.
This is because the money that is pooled in are not invested only in debts funds which are less riskier but are also invested in the stock markets which involves a higher risk but can expect higher returns. Hedge fund involves a very high risk since it is mostly traded in the derivatives market which is considered very volatile.
HISTORY ABOUT MUTUAL FUND
The mutual fund was born from a financial crisis that staggered Europe in the early 1770s.
The British East India Company had borrowed heavily during the preceding boom years to
support its ambitious colonial interests, particularly in North America where unrest would
culminate in revolution in a few short years.
As expenses increased and revenue from colonial adventures fell, the East India Company
sought a bailout in 1772 from the already-stressed British treasury. It was the “original too
big to fail corporation” and the repercussions were felt across the continent and indeed
around the world.
At the same time, the Dutch were facing their own challenges, expanding and exploring like
the British and taking “copy-cat risks” in a pattern that has drawn parallels to the banking
crisis of 2008.
THE FIRST MUTUAL FUND
Against this backdrop, a Dutch merchant, Adriaan van Ketwich, had the foresight to pool
money from a number of subscribers to form an investment trust – the world’s first mutual
fund – in 1774. The financial risk to the mainly small investors was spread by diversifying
across a number of European countries and the American colonies, where investments were
backed by income from plantations, an early version of today’s mortgage-backed securities.
Subscription to the closed-end fund, which Van Ketwich called “Eendragt Maakt Magt”, was
available to the public until all 2,000 units were purchased. After that, participation in the
fund was available only by buying shares from existing shareholders in the open market. The
fund’s prospectus required an annual accounting, which investors could view if they
requested. Two subsequent funds set up in the Netherlands increased the emphasis on
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diversification to reduce risk, escalating their appeal to even smaller investors with minimal
capital.
Van Ketwich’s fund survived until 1824 but the vehicle he created is still a hallmark of
personal investing more than two centuries later with an estimated $27.86 trillion US in
global assets in July 2013. In Canada alone, mutual funds represent $920 billion.
The early mutual funds spread were of the closed-end variety, issuing a fixed number of
shares. They spread from the Netherlands to England and France before heading to the U.S.
in the 1890s.
The first modern-day mutual fund, Massachusetts Investors Trust, was created on March 21,
1924. It was the first mutual fund with an open-end capitalization, allowing for the
continuous issue and redemption of shares by the investment company. After just one year,
the fund grew to $392,000 in assets from $50,000. The fund went public in 1928 and
eventually became known as MFS Investment Management.
INDIAN SCENARIO OF MUTUAL FUND
The origin of mutual fund industry in India is with the introduction of the concept of by UTI in the year 1963. Through the growth was slow, but it accelerated from the year 1987 when non-UTI players entered in industry. The mutual fund industry goes through four phases:-
First phase 1964-87 (Establishment of UTI). Second phase 1987-93 (Entry of public sector funds). Third phase 1993-2003 (Entry of a private sector funds). Fourth phase since feb.2003 (Bifurcated of UTI).
FIRST PHASE – 1964-87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by
the Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of 1988
UTI had Rs.6, 700 Crores of assets under management.
SECOND PHASE – 1987-1993 (ENTRY OF PUBLIC SECTOR FUNDS)
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1987 marked the entry of non- UTI, public sector mutual funds set up by public sector banks
and Life Insurance Corporation of India (LIC) and General Insurance Corporation of India
(GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June 1987
followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89),
Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund
(Oct 92). LIC established its mutual fund in June 1989 while GIC had set up its mutual fund
in December 1990. 11 At the end of 1993, the mutual fund industry had assets under
management of Rs.47, 004 Crores.
THIRD PHASE – 1993-2003 (ENTRY OF PRIVATE SECTOR FUNDS)
With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year
in which the first Mutual Fund Regulations came into being, under which all mutual funds,
except UTI were to be registered and governed. The erstwhile Kothari Pioneer (now merged
with Franklin Templeton) was the first private sector mutual fund registered in July 1993.
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 number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and acquisitions.
As at the end of January 2003, there were 33 mutual funds with total assets of Rs. 1, 21,805
Crores. The Unit Trust of India with Rs.44, 541 Crores of assets under management was way
ahead of other mutual funds
FOURTH PHASE – SINCE FEBRUARY 2003
In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust of
India with assets under management of Rs.29, 835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other schemes.
The Specified Undertaking of Unit Trust of India, functioning under an administrator and
under the rules framed by Government of India and does not come under the purview of the
Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the bifurcation
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of the erstwhile UTI which had in March 2000 more than Rs.76,000 Crores of assets under
management and with the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual
Fund
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MAJOR MUTUAL FUND COMPANIES IN INDIA
ABN AMRO Mutual Fund
Bank of Baroda Mutual Fund
HSBC Mutual Fund
ING Vysya Mutual Fund
Prudential ICICI Mutual Fund
State Bank of India Mutual Fund
Tata Mutual Fund
Unit Trust of India Mutual Fund
Reliance Mutual Fund
Standard Chartered Mutual Fund
Birla Sun Life Mutual Fund
HDFC Mutual Fund
Escorts Mutual Fund
Alliance Capital Mutual Fund
Franklin Templeton India Mutual Fund
Morgan Stanley Mutual Fund India
IIFL Mutual Fund
IDFC Mutual Fund
Indiabulls Mutual Fund
LIC Nomura Mutual Fund
JM Financial Mutual Fund
Axis Mutual Fund
BNP Paribas Mutual Fund
BOI AXA Mutual Fund
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Deutsche Mutual Fund
Edelweiss Mutual Fund
IDBI Mutual Fund
JP Morgan Mutual Fund
Kotak Mahindra Mutual Fund
L&T Mutual Fund
UNIT TRUST OF INDIA MUTUAL FUND
Unit Trust of India was created by the UTI Act passed by the Parliament in 1963. For more
than two decades, it remained the sole vehicle for investment in the capital market by the
Indian citizens. In mid- 1980s Public Sector Banks were allowed to open mutual funds. The
real vibrancy and competition in the Mutual Fund industry came with the setting up of the
Regulator SEBI and its laying down the MF Regulations in 1993. UTI maintained its pre-
eminent place till 2001, when 8 massive decline in the market indices and negative investor
sentiments after Ketan Parekh scam created doubts about the capacity of UTI to meet its
obligations to the investors. This was further compounded by two factors namely, its flagship
and largest scheme US 64 was sold and re-purchased not at intrinsic NA V but at artificial
price and its Assured Return Schemes had promised returns as high as 18% over a period
going up to two decades.
UTI Mutual Fund is managed by UTI Asset Management Company Private Limited (Est.: Jan
14, 2003) who has been appointed by the UTI Trustee Company Private Limited for
managing the schemes of UTI Mutual Fund and the schemes transferred / migrated from UTI
Mutual Fund.
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No. of schemes 94
No. of schemes including options 366
Equity Schemes 97
Debt Schemes 225
Short term debt Schemes 20
Equity & Debt 12
Money Market 0
Gilt Fund 11
Corpus under management
Rs. 71770.05 Crs. as on Jan 31, 2013.
Some of the funds have won famous awards, including the Best Infra Fund globally from
Lipper. UTI has been able to benchmark its employee compensation to the best in the
market.
Besides running domestic MF Schemes UTI AMC is also registered portfolio manager under
the SEBI (Portfolio Managers) Regulations.
This company runs two successful funds with large international investors being active
participants. UTI has also launched a Private Equity Infrastructure fund along with HSH
Nord Bank of Germany and Shinsei Bank of Japan.
ASSETS UNDER MANAGEMENT:
UTI Asset Management Co. Ltd
SPONSOR:
State Bank of India Bank of Baroda Punjab National Bank Life Insurance Corporation of India
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TRUSTEE:
UTI Trustee Co. Limited.
Future Prospect of Mutual Funds in India
The Future of Mutual Funds in India suggests that the industry has got huge scopes of
development in the times to come. The Future of Mutual Funds in India is quite bright,
Mutual Funds are one the most popular forms of investments as these funds are
diversification, professional management, and liquidity. In the year 2004, the mutual fund
industry in India was worth Rs 1,50,537 crores. The mutual fund industry expected to grow at
a rate of 13.4% over the next 10 years.
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2.2 INTRODUCTION TO THE INDUSTRY
Financial services like banking, merchant banking, factoring, Insurance, Venture capital, act
as vital machinery of an economy. These financial services that facilitate financial
transactions of individuals and institutional services resulting in their resources allocation
activities through time. The sector that deals with such financial services is known as
financial services sector.
The Three pillars of Financial System are:
Banking
Insurance and Mutual Funds
Online Trading
FINANCIAL INSTITUTION
In financial economics, a financial institution is an institution that provides financial services
for its clients or members. Probably the most important financial service provided by
financial institutions is acting as financial intermediaries. Most financial institutions are
regulated by the government.
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
Contractual Institutions: Insurance companies and pension funds; and
Investment Institutes: Investment Banks, underwriters, brokerage firms.
BROKING FIRM
The stock broking industry is a service-oriented industry where brokers act as agents for
investors when a security is bought or sold and are compensated with a commission.
Investors would not hesitate to switch to alternative brokerage houses if they do not obtain
satisfaction. Providing quality service and hence customer satisfaction should thus be
recognized as a key strategy and a crucial element of long-run success and profitability for
stock broking businesses.
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The Securities Brokerage Industry is cyclical and comprised of two distinct types of
businesses. Brokerages, also known as financial services companies, strive to meet the
investing needs of their clients, and exchanges facilitate securities trading.
Net profits correlate to the performance of the broader equity market. In this market with less
differentiated products and many players, there exists an oligopoly, characterized by tough
competition, entry and exit barriers and many more.
Little has been done towards understanding the expectations investors hold from their
stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,
the delivery of services that exceed customer expectations is one strategy that can give firms
a competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a
dynamic economic environment like India, to provide service at a good scale of quality. In
addition, stockbrokers have much to gain in understanding investors’ expectations of them, as
this would help the stockbrokers to serve their customers better and foster long-lasting
relationship with their customers.
TYPES OF BROKERAGE FIRMS
As an investor, you should shop for a brokerage firm just as you would for any other
professional service. Brokerage firms come in all sizes, from "one-man" firms to
international corporations. Similarly, the services offered by each firm and the commissions
they charge vary significantly.
Brokerage firms may be classified into three basic types: full-service, discount and limited
products.
1). FULL-SERVICE BROKERAGE FIRM:
A full service brokerage firm can provide you with a complete package of investment
services, including recommending securities, researching a particular issue, or providing
individualized service through a salesperson. The firm receives its payment in the form of a
commission that is calculated according to the type of security and the amount you are
investing. A full-service firm is generally best for those who are new to the market or who
do not have the time or the desire to do their own investment research.
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2).DISCOUNT BROKERAGE FIRM:
It is a business that charges clients significantly lower fees than a traditional brokerage firm
but without providing financial advice. Discount brokers typically allow investors as well as
consumers of financial services to buy and sell on-line while offering comparatively fewer
services and/or support.While a discount brokerage also can provide you with a wide range of
services, its salespersons are not allowed to give investment advice, to make
recommendations or to provide research materials. For these reasons, a discount firm can
offer substantially lower commissions than full-service brokers. Experienced investors
capable of doing their own investment research typically use a discount firm.
3).LIMITED PRODUCTS FIRM:
These brokerage firms specialize in a limited number of securities products, such as mutual
funds, limited partnerships or specific bonds.
RECENT ADVANCEMENTS IN THE INDUSTRY
With market sentiment turning positive due to the formation of a stable newly elected
government, the ripple effect is likely to felt across all the financial services in India.
Financial services and real estate sector rose by 11.5 per cent in the first quarter of 2011-12.
Slashing interest rates, lowering factory levies and more than doubling the limit on foreign
investment in corporate bonds has led to rapid growth in the financial sector. 2011-2013 saw
increased inflow in to equity with investors steadily turning positive on equity with net
investment of mutual funds in debt almost getting tripled. India’s market capitalization has
touched US$ 1.24 trillion making it the largest among in the world. The Indian stock market
has currently responded to the optimism of reforms by the new stable government and its
continuity in policies. Falling commodity price will ease input cost of the industries.
Government policies to boost the economy. Inflation is at control 9- 10%. As interest rate in
developed economy is record low, India could attract investment. Reducing interest rates
provide fuel to the recession economy making the financial system more secure.
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TOP 10 FINANCIAL SERVICES COMPANY;
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.
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2.3 INTRODUCTION OF THE COMPANY
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.
ICICI Securities is the member of NSE & BSE and registered as Broker. It provides business
opportunity to entrepreneurs by registering them as Sub-Brokers / Authorized Person. ICICI
Securities provides trading terminals through which the Sub-broker can offer a range of
financial products like Equities, Derivatives, Currency Derivatives, IPO, MF, Bonds, and
Fixed Deposits etc.
Another way to get associated with ICICI Securities, as an Independent financial Advisor and
gain access to a wide range of financial products like MF, IPOs, Bonds, Corporate Fixed
Deposits.
One can also be associated as an Investment Advisor to sell a range of financial products like
IPO, Bonds, Fixed Deposits, etc. to their set of customers. In addition, they can also sell asset
products like Home Loans, Education Loans, etc. to the customers.
ICICI Securities empowers over 2 million Indians to seamlessly access the capital market
with ICICIdirect.com, an award winning and pioneering online broking platform. The
platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures,
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Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension
Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use
platform to invest in equity and various other financial products using its unique 3-in-1
account which integrates customers saving, trading and de-mat accounts.
Apart from convenience, ICICIdirect.com also offers access to comprehensive research
information, stock picks and mutual fund recommendations among other offerings. Tailored
services and trading strategies are available to different types of customers; long term
investors, day traders, high-volume traders and derivatives traders to name some.
ICICIdirect.com uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL), to ensure that the information transmitted
between the client and ICICIdirect.com across the internet is safe and cannot be accessed by
any third party.
ICICIdirect.com is the first broker in India to introduce ‘Digitally Signed Contract Note’ to
its customers. As a result, the process of generating contract notes has been automated and
the same would be instantly available to its customers in a safe and secure manner through
the website.
ICICI Securities has set-up neighbourhood financial stores which offer a variety of financial
products and services under one roof. It is a one-stop shop that facilitates existing and
potential customers to speak to our team and understand their financial plans and goals. ICICI
Securities has 250 stores across 66 cities in India.
Another unique concept called the ICICIDirect.com Money Kitchen, was launched in late
2009. An extension of the superstore model, the money kitchen is an innovative financial
store where visitors can create their profiles to not only analyze their investment strategy by
using various financial tools but also monitor it from time-to-time.
To enable our customers to maximize their returns and plan for their future, ICICIDirect.com
has also started financial planning services at these stores. Customized financial plans can be
created for our customers by dedicated Relationship Managers who will understand the
customer's requirements and future goals.
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Based on this information, the Relationship Manager works on creating a comprehensive and
easy to read financial plan. This enables ICICIDirect.com to move from just a transactional
based relationship to a meaningful and value-added long-term relationship with our
customers. ICICIDirect.com services and offerings evolve according to the customer's ever
changing requirements and goals.
Customers can walk-in to the financial superstores for products like ICICIDirect.com 3-in-1
online trading account, equities, mutual funds, IPO, Life and General insurance, Fixed
Deposits and many other financial products. The stores also conduct periodic training
sessions on markets and demo sessions of the trading website.
Board of Directors:-
Ms. Chanda D. Kochhar,Chairperson
Mr. Uday Chitale
Mr. Narendra Murkumbi
Ms. Zarin Daruwala
Ms. Shilpa Kumar
Mr. Anup Bagchi, Managing Director & CEO
ORGANISATION STRUCTURE
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Branch Manager(Mrs
Parul Nandode)
Key Relationship Manager(Miss
Surbhi)
Sr. Relationship Manager(Mr.
Hemant)
Sr. Relationship Manager(Mr Prabhakant)
Key Relationship Manager(Mr
Nitesh)
Sr. Relationship Manager(Mr
Mittal)
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ADVANTAGES WITH ICICI DIRECT
3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility. There is absolutely no manual interfere require. This
is truly online trading environment.
Unlike most of the online trading companies in India which require transferring
money to the broker's pool or towards deposits, at ICICIDirect you can manage your
own demat and bank accounts through ICICIdirect.com. Money from selling stock is
available in ICICI bank account as soon as the ICICIDirect receive it.
Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes
all from one website. General Insurance is also available from ICICI Lombard.
Trading is available in both BSE and NSE.
DISADVANTAGES WITH ICICI DIRECT
ICICIDirect brokerage is high and not negotiable.
ICICIDirect doesn't offer commodity trading. With ICICI Trading account you cannot
trade at MCX or NCDEX.
With ICICIdirect.com e-Invest account(3-IN-1 concept), the Demat Account has to be
opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank
Account has to be opened with ICICI Bank Ltd. as the Banker.
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TYPES OF MUTUAL FUNDS
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2.4 INTRODUCTION TO THE PROJECT
A mutual fund is a kind of investment that uses money from many investors to invest
in stocks, bonds or other types of investment. A fund manager or portfolio manager decides
how to invest the money, and for this he is paid a fee, which comes from the money in the
fund.
There are thousands of different kinds of mutual funds, specializing in investing in different
countries, different types of businesses, and different investment styles. There are even some
funds that only invest in other funds.
TYPES OF MUTUAL FUNDS
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BY STRUCTURE
Open-Ended Schemes
Close-Ended Schemes
Interval Schemes
BY NATURE
Equity Funds
Debt Funds
Balanced Funds
BY INVESTMENT OBJECTIVE
Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
OTHER SCHEMES
Tax-Saving Schemes
Index Schemes
Sector Specific
Schemes
GILT FUND
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A) BY STRUCTURE
Open-ended fund/scheme:
An open-ended fund is one that is available for subscription and repurchase on continuous
basis. These schemes do not have a fixed maturity period. Investors can conveniently buy
and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end scheme is liquidity.
Close-ended fund/scheme:
A close-ended scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an
exit route to the investors, some close ended funds give an option of selling back the units to
mutual funds through periodic repurchase at NAV related prices. SEBI regulation stipulated
that at least one of the two exit routes is provided to the investors i.e. either repurchase
facility or through listing on stock exchanges. These mutual funds schemes disclose NAV
generally on weekly basis.
Interval :
Operating as a combination of open and closed ended schemes, it allows investors to trade
units at pre-defined intervals.
B) BY NATURE
Equity Fund:
These funds invest the maximum part of their corpus into equities holdings. The structure of
the fund may vary different for different schemes and the fund manager’s outlook on
different stocks. The Equity Funds are sub-classified depending upon their investment
objective, as follows:
1. Diversified Equity Funds
2. Mid-Cap Funds
3. Sector Specific Funds
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4. Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
DEBT FUNDS:
The objective of these Funds is to invest in debt papers, Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
GILT FUNDS :
Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are
associated with Interest Rate risk. These schemes are safer as they invest in papers
backed by Government.
INCOME FUNDS:
Invest a major portion into various debt instruments such as bonds, corporate
debentures and Government securities.
MIPS :
Invests maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt market.
These scheme ranks slightly high on the risk-return matrix when compared with
other debt schemes.
SHORT TERM PLANS (STPS):
Meant for investment horizon for three to six months. These funds primarily invest in
short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs).
Some portion of the corpus is also invested in corporate debentures.
LIQUID FUNDS :
Also known as Money Market Schemes, These funds provides easy liquidity and
preservation of capital, These schemes invest in short-term instruments like Treasury
Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-
term cash management of corporate houses and are meant for an investment
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horizon of 1 day to 3 months. These schemes rank low on risk-return matrix and
are considered to be the safest amongst all categories of mutual funds.
BALANCED FUNDS
As the name suggest they are a mix of both equity and debt funds. They invest in both
equities and fixed income securities, which are in line with pre-defined investment objective
of the scheme. These schemes aim to provide investors with the best of both the worlds.
Equity part provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter viz;
each category of funds is backed by an investment philosophy, which is pre-defined in the
objectives of the fund. The investor can align his own investment needs with the funds
objective and invest accordingly.
ACCORDING TO INVESTMENT OBJECTIVES:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows:
Growth or equity oriented Scheme:
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risk. These schemes provide different options to the investors like
dividend option, capital appreciation and the investors may choose an option depending on
their performance. The investors must indicate the option in the application form. The mutual
funds also allow the investors to change the options at a later date. Growth schemes are good
for investors having a long term outlook seeking appreciation over a period of time.
Income / debt oriented schemes:
The aim of income funds is to provide regular and steady income to investors. Such schemes
generally invest in fixed income securities such as bonds, corporate debentures, Govt.
securities and money market instruments. Such funds are less risky compared to equity
schemes. These funds are not affected because of fluctuations in equity markets. However,
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opportunities of capital appreciation are also limited in such funds. The NAVs of such funds
are affected because of change in interest rates in the country. If the interest fall, NAVs of
such funds are likely to increase in the short run and vice-versa. However, long term
investors may not bother about these fluctuations.
Balanced Funds:
The aim of balanced funds is to provide both growth and regular income as such schemes
invest both in equity and fixed income securities in the proportion indicated in their offer
document. These are appropriate for the investors looking for moderate growth. They
generally invest 40% to 60% in equity and debt instruments. These funds are also affected
because of fluctuation in share prices in the stock markets. However, NAVs of such funds are
likely to be less volatile compare to pure equity funds.
Money market or liquid funds:
These funds are income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term
instruments such as treasury bills, certificates of deposits, commercial paper and inter-bank
call money, government securities, etc. Returns on these schemes fluctuate much less
compared to other funds. These funds are appropriate for corporate and individual investors
as a means to park their surplus funds for short periods.
OTHER SCHEMES
ELSS:
Equity linked savings scheme (ELSS) are equity funds floated by mutual funds. This scheme
is suited for young people as they have the ability to take on higher risk. The ELSS funds
should invest more than 80 per cent of their money in equity and related instruments. It is
ideal to invest in them when the markets are down. These funds are now open all the year
round. The other way of investing in these funds could be a systematic investment, which
essentially means investing a small sum regularly (monthly or quarterly). It is a market-linked
security and therefore there will be risks accordingly.
Index funds:
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Index funds replicate the portfolio of a particular index such as the BSE sensitive index, S&P
NSE-50 index (Nifty) etc. These schemes invest in the securities in the same weightage
comprising of an index. The NAVs of such schemes would rise or fall in accordance with the
rise or fall in the index, though not exactly by same percentage due to some factors known as
“tracking error” in technical terms. Necessary disclosures in this regards are made in the offer
document of the mutual fund scheme. These are also exchange traded index funds launched
by the mutual funds which are traded on the stock exchange.
SECTORAL SCHEME :
Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or
segments of the capital market like large caps, mid caps, etc. This scheme provides a
relatively high risk-high return opportunity within the equity space.
TYPES/ METHODS OF SIP’S
There are many investment methods in SIP now you can invest in your desired shares
through SIP. You can invest on the daily, weekly, fortnightly or quarterly basis with the help
of SIP.
Monthly Systematic Investment Plan (SIP) :
This is the traditional way of SIP investment in Equity Mutual Fund. This is the best
option for salaried people. Investor can choose any date of each month falling from 1
to 10.
Daily Systematic Investment Plan (SIP) :
In this method, your investment is invested in the fund on daily basis. Some mutual
funds offer ‘daily SIP’ option. This product is best for small traders involved in micro
segment. But some people don’t like Daily SIP and sometimes it give you losses.
Actually, it average your investment on a regular basis but it proves to be a burden
sometimes.
Flexi Systematic Investment Plan (SIP)
Traditional SIP allows you to invest a specific amount on monthly or daily basis.
However, the investor of Flexi SIP can invest different amounts in SIP investment at
different time periods. He can make modifications month after months in amount to
be invested. This cannot be done through mutual funds.
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With the help of this facility, investor can invest Rs. 1,000- Rs. 10,000 per month and this
depends on cash in hand. However, the investors who are not much aware of market
conditions should be careful while investing through Flexi Systematic Investment Plan (SIP).
CHAPTER 3: LITERATURE REVIEW
Mutual funds industry is a growing at a very fast rate India. Various studies and research has
been on this industry by experts. Here are the lists of few books that have been referred to for
the purpose of the study.
Mr. M. Jaidev in his book has “Investment policy and performance of Mutual Fund” has
studied the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of
return. “Investment policy and pricing of mutual funds” In this book he has done an empirical
study covering all aspects of mutual fund investment along with the regulatory framework.
Nalini Prava Tripathy in her book “Mutual Funds in India Emerging Issues” provides a
detailed evaluation of investment management which is not only helpful for influencing
marketing operations but also for securities selection, investment research and timing and
resource allocation.
Dr H. Sadak in his book “Mutual Funds in India” has highlighted the importance of financial
institutions in India, The basic focus on the growth and development of mutual funds in
India. The entire gamut of the theoretical aspects of the fund management has been critically
examined in the context of the performance of mutual funds and it provides an insight into
fund management and the areas of weakness.
Study by Laukkanen (2006) explains that varied attributes present in a product or service
facilitate customer’s achievement of desired end state and the indicative facts of study show
that electronic services create value for customers in service consumption.
Source: - vsrdjournal.com
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CHAPTER 4: STUDY/ PROJECT DETAILS
4.1 Need For Study
The main purpose of this Project is to create awareness about what are mutual funds and how
one can invest online, manage it online & redeem it online through ICICI Direct platform by
showing a demo prepared by ICICI securities .In this way ICICI Securities can collect more
customers and the feedback which is taken from customers can be used to improve the
website, and improve the services. Even to understand the buying behavior of the customer.
4.2 Objective of the Study/project
1. To identify the consumer perception about mutual funds investing through ICICI
DIRECT.
2. To know the psychology of the customer regarding online trading.
3. To know whether they are going to invest in the Mutual Fund in future.
4. To analyse interest of a customer through Mutual Fund Simplified video to create
business for ICICI Securities.
5. To examine the extent to which the information made available on the web portals
meets the information needs of the retail investors.
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4.3 Study Methodology
Research Type
Exploratory: The analysis of behaviour of customers regarding mutual funds, use of
ICICIDirect.com for making investments and trading and analysing effectiveness of the
awareness program “Mutual Funds Simplified” will be done through exploratory research. A
proper questionnaire is formed to get the required feedback from customers.
Descriptive: The comparative study of various mutual funds schemes will be done through
descriptive research. There will be use of ICICIDirect.com website as well as financial news
channel reports, financial/investment magazines for gathering the required information on
comparative study of different mutual funds schemes. Also, experts’ opinions or
recommendations will be useful for this study.
The study consists of analysis about customer’s awareness and satisfaction of ICICI
Securities Ltd. For the purpose of the study 50 customers are picked up and their views
solicited on different parameters. Discussions were held With ICICI securities customers to
ascertain the awareness satisfaction level.
The data collected for the study purpose is through questionnaires. 50 customers of ICICI
Securities gave appointment to watch the demo of Mutual Fund Simplified.
Then the information revealed from the customers is analysed and interpreted in the study.
Questions are:
1) How much will you rate the demo between scales of 1 to 5?
2) Are you planning to invest in mutual fund?
3) Any suggestions/feedback.
SAMPLING PLAN:
Population:
Kandivali East Customers of ICICI Securities Ltd.
Sampling size: A sample of forty was chosen for the purpose of the study. Sample considers of
small investor, large investors and traders of ICICI securities Ltd.
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4.4 STUDY LIMITATIONS
This research reflects on individual customers in Kandivali (east), Mumbai only. So
findings and suggestions given on the basis of this research cannot be extrapolated to
the entire population.
As sampling technique is convenient sampling so it may result in personal biased. So
perfect result cannot be achieved.
It takes much time to go in different areas and fill up questionnaire so the timings are
also limited to make the Project.
To create hypothesis and make cross tabulation is little bit confusing technique so it
may be a limitation. In India people are not much care full and educated regarding
Investment plan so to do this type of research is little hard.
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CHAPTER 5: DATA PROCESSING AND ANALYSIS
OBJ ECTIVE 1:
To study the content of the Mutual Fund Awareness video shown to ICICI securities ltd
customers.
MUTUAL FUND INVESTING
If one has an ICICI Direct account
STEP 1: LOGIN
Login to account by entering login id, password and DOB.
If the Mutual Fund section is not enabled either you have not opted for the facility or may not
be KYC (Know-Your-Customer) Compliant. KYC is mandatory for all investments in
Mutual Fund as per the Securities and Exchange Board of India (SEBI).
Our online service is ever evolving and offers you facilities like making a lump sum
investment, redemption, switches within same funds, setting up systematic investment plans
(SIP) etc.
We can start with as little as Rs.500 when we start a Systematic Investment Plan or Rs.5,
000 if we are looking for a lump sum investment.
STEP 2: FUND SELECTION
It will go to fund selection page which is consists of following options:
Select fund to invest - directly type the name of the fund.
Fund of the month - It is a monthly recommended funds based on current market scenario.
Research recommendations - These are funds recommended on the basis of performance of
the fund and the market conditions in different asset classes depending on different
parameters like time horizon, risk appetite etc.
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Top selling funds - These are the funds which have been bought most on ICICIdirect.com in
last 30 days.
STEP 3: PURCHASE
After clicking on any option above it will go to purchase page where we can choose new
folio or existing folio. Once everything has been filled, click on proceed for confirmation. It
will take us to add to the modifying allocation page.
And on that we can add or reduce the amount we want and once we Click on the submit
button, it will take us to the final confirmation page. And once we click the button final
confirmation our mutual fund order will be placed.
STEP 4: PORTFOLIO MANAGEMENT
To do portfolio management go to the mutual fund page and select portfolio and then it will
go to the portfolio tracker page, where we can see the details, NAV etc.
NAV - NET ASSET VALUE
Net asset value is the market value of the asset of the scheme minus its liabilities. The per
unit NAV is the net asset value of the scheme divided by the Number of units outstanding on
the valuation date.
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund.
Mutual funds invest the money collected from the investors in securities markets. In simple
words, Net Asset Value is the market value of the securities held by the scheme. Since
market value of the securities changes every day, NAV of a scheme also varies on day-to-day
basis. The NAV per unit is the market value of securities of a scheme divided by the total
number of units of the scheme on any particular date. For example, if the market value of
securities of a mutual fund scheme is Rs200 lacks and the mutual fund has issued 10 lacks
units of Rs 10 each to the investors, then the NAV per unit of the fund is Rs 20.
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STEP 5: REDEMPTION
In addition to giving hassle-free paperless redemption, ICICldirect.com offers faster
liquidity. We can redeem the mutual fund units through ICICIdirect.com.
To-do this we have to goto the tracker page and click on redeem whichever mutual fund we
have to redeem. Select the amount we have to redeem and then click on proceed to
confirmation it will take to the conformation page where the final conformation will be taken
and money will be credited to bank account automatically in 3 days after the order
placement date.
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Q1) How much will you rate the demo from 1 to 5. (Where 5 is the highest and 1 is the
lowest)
Out of 350 callings 40 customers were ready to watch the demo.
Data collected from 40 customers are given below:
RATINGS NO. OF
RESPONDENTS
PERCENTAGE
5 8 20%
4 32 80%
3 0 0
2 0 0
1 0 0
NO. OF RESPONDENTS
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Number of c
all
Number of a
ppointmen
t
alread
y aware
about
not inter
ested
wrong number
Switch
off0
50
100
150
200
250
300
350
RATING OF DEMO
5 rating15%
4 rating85%
Rating
From the survey it was found that out of 40 respondents 80% of customers find it
satisfied with the services of ICICIDirect .com, and 20% are highly satisfied .Then we
can say that ICICIDirect.Com offers quality service that touches customers’ satisfaction
level.
OBJECTIVE 2: To analyze interest of a customer through Mutual Fund Simplified video to
create business for ICICI Securities.
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After showing the mutual fund demo to its customers we ask them their interest in investing
in mutual fund.
Are you planning to invest in mutual fund in ICICI securities?
15% of the customer’s tendency is they believe that Mutual Fund is the safest way to invest
in the market. And 85% of the customers are not looking forward for investing in mutual
fund due to various reasons. Some of the prime reasons are:
They don’t want others to play with their money.
Brokerage and other charges of ICICI securities is high.
No guaranteed returns.
Depend on others.
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15%
85%
No. of respondents
YESNO
YES/NO NO. OF
RESPONDENTS
PERCENTAGE
Yes 6 15%
No 34 85%
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OBJECTIVE 3: To examine the extent to which the information made available on the web
Portal meets the information needs of the retail investor
From the survey some of the important suggestions has been collected which is given by
Customers:
Most of the investors prefer investing in equity funds and bank FD’s rather than mutual fund
due to lack of knowledge about mutual funds.
ICICI Direct platform is user friendly as it gives overall view on a single click.
Viewers found that duration of long term capital gains and short term capital gains is not been
specified which is important for an investor to know about whether he is able to invest for a
short term or long term and when it comes to capital gains tax implications, it can be
categorized into long term capital gains (LTCG) tax and short term capital gains (STCG) tax.
LTCG tax is applied when units are held for more than 12 months or one year. While STCG
tax has to be paid when units are held for less than 12 months. This segregation of short term
capital gain and long term capital gain with tax should be specified so that one can compare
expected returns and tax from them and accordingly invest their savings.
ICICIDirect brokerage is high and not negotiable .Some Asset Management Companies
(AMCs) have sales charges, or loads, on their funds (entry load and/or exit load) to
compensate for distribution costs. Entry load is charged at the time an investor purchases the
units of a scheme. The entry load percentage is added to the prevailing NAV at the time of
allotment of units. Exit load is charged at the time of redeeming or transferring an investment
between schemes. The exit load percentage is deducted from the NAV at the time of
redemption or transfer between schemes. This amount goes to the Asset Management
Company and not into the pool of funds of the scheme. So, ICICI Direct platform could have
been more exhaustive by providing a clear picture to an investor about entry or exit loads and sales
charges, Lock in period to know the redeem charges applied while redeeming etc.
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CHAPTER 6: FINDING, CONCLUSION AND SUGGESTION
6.1 FINDING
From the study we can understand that the customers are not investing in the mutual fund
through ICICIDIRECT.com here some findings are there.
Reason for not investing in the mutual fund is that only 35% of the customers are
aware about that mutual funds are also available on the online portal of
ICICIdirect.com rest of 65% do not know about that.
Second reason for not investing in the mutual fund is the charges. ICICI
SECURITIES is charging for the buying mutual fund where online AMC’S are not
charging for buying and know a day’s all AMC’S are having their own online portal
and giving facility to purchase and sale of mutual fund
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6.2 OBSERVATIONS
Most of the people don’t have proper knowledge about the mutual funds and that is
why probably they don’t invest in mutual fund.
The services provided in online platform through ICICI Direct is so flexible and user
friendly that most of the business men who have good knowledge about the mutual
funds and as result they invest in mutual fund very frequently.
Most of the respondents consider bank deposit as investment vehicle. They don’t have
clear cut idea about the difference between the savings and investment.
Some of the respondents have wrong perception about the mutual funds. They feel
mutual funds are very risky investment alternative.
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6.3 CONCLUSION
After a thorough study and analysis of the questionnaires, Feedback given by clients some
important and useful findings can be stated. These findings have helped in a great way to
come to the conclusion part of the project work. The project was quite successful at the end
of the internship period of the researcher. The researcher had a great experience working with
ICICI Securities Ltd. Meetings with customers were useful to understand their queries about
mutual funds and investment in the same with the use of ICICIDirect.com.
There was a lot of confusion about mutual funds in the minds of customers. Because of the
awareness program undertaken by ICICI Securities Ltd many of the respondents now have
clear idea about mutual funds and are willing to invest in the same.
Though many of the customers were aware about online investment in MFs through
ICICIDirect.com, only few were investing. But after showing the demo of the same, many of
them impressed with it and gave positive response about the awareness program.
Also, the researcher got ample of knowledge about the mutual funds and various schemes
available on ICICIDirect.com. The researcher also learnt about comparison of various
schemes based on different parameters.
As many of the customers are now aware about the mutual funds and online investment
through ICICIDirect.com, the project has been successfully completed by the researcher.
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6.4 SUGGESTION
After seeing the whole Data analysis and findings, the Recommendations for the company are
shown as below.
The company should give the knowledge regarding Mutual Fund through various
sources like more advertisement, TV programmes etc. about what it is? How it
works? What is its benefit for us with its advertisement or in programmes? Because
many people have heard about it but don’t know what it is?
The company should also attract the low Income people by showing them the benefits
of the liquidity funds for the short Term to attract them.
The company should also attract the customer through different schemes who having
knowledge about the Mutual Funds but not investing in Mutual Funds.
The company should give information regarding Tax benefit to Invest into Mutual
Fund.
The company should organize Free seminars to give information about Mutual Fund
and should distribute brochures having detail of schemes of Mutual Fund
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6.5 LEARNING FROM THE INTERNSHIP
My work during the internship involved mainly the using of ICICIDIRECT portal, which has helped me in learning the online using of portal and have given me the brief view about how it work.
During my internship had a great experience to learn:
How to deal with customers and try to resolve their problem
Also helped me in improving my Communication skills.
I observed the practical application of how to buy, redeem mutual fund online.
Also i learnt the importance of Punctuality and Discipline in Work place. During my 2 months of Internship, I got to know how does broking firms works. Thus helping me to gain more practical knowledge in Mutual fund sector.
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6.6 CONTRIBUTION TO THE ORGANIZATION
During the course of my internship at ICICI SECURITIES LTD for the duration of 2 months.
I was assigned to show the demo to the current ICICI direct customers about the working of
ICICIDIRECT portal .how they can buy, redeem and maintain the mutual funds.
So the data collected by me were used by the ICICI SECURITIES to map and unmapped the
customer as they will get the glimpse about the customer behavior.
Which would help them in generating revenue.
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6.7 WEBLIOGRAPHY / BIBLIOGRAPHY
www.icicidirect.com
www.amfiindia.com
www.ific.ca/en/articles/who-we-are-history-of-mutual-funds/
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6.8 ANNEXURE
FOLLOWING IS THE QUESTIONNAIRE, WHICH I TOOK RESPONSES FROM
CLIENTS AND HELPED FOR DOING THE PROJECT.
1.HOW DO YOU RATE THIS VIDEO?
Worst
Bad
Average
Satisfied
Highly satisfied
2.ARE YOU PLANNING TO INVEST IN MUTUAL FUND IN ICICI SECURITIES?
YES
NO
3.FEEDBACK/SUGGESTION?
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