icici prudential ppt12
Embed Size (px)
DESCRIPTIONA final Project on ICICI Prudential Summer Training..If u hav done ur training in Mutual Funds, then no need goin elsewhere .. ur project is here.. Enjoy & Take care..
ICICI Prudential Asset Management Company enjoys the strong parentage of Prudential plc, one of UK's largest players in the insurance & fund management sectors and ICICI Bank, a well-known and trusted name in financial services in India.
ICICI Prudential Asset Management Company, in a span of just over eight years, has forged a position of pre-eminence in the Indian Mutual Fund industry as one of the largest asset management companies in the country with assets under management of Rs. 53,124.45 Crore (as of July 31, 2008).
The Company manages a comprehensive range of schemes to meet the varying investment needs of its investors spread across 68 cities in the country.
Rs. 160 crores Rs. 53124.45 crores
Asset under Management
Number of funds managed
At Inception May 1998
As on August,2008
Definition of Mutual Funds Mutual Funds Definition refers to the
meaning of Mutual Fund, which is a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks, Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices. These things help the fund mangers to speculate properly in the right direction.
The company has 19 bank Assurance
partners, having tie-ups with ICICI Bank, Bank of India, Federal Bank, South Indian Bank, Lord Krishna Bank, all regional rural banks sponsored by Bank of India, as well as some co-operative banks; as well as over 200 corporate agents and brokers. It has also tied up with NGOs, MFIs and corporates for the distribution of rural policies.
BOARD OF DIRECTORS
The ICICI Prudential AMC Limited Board comprises reputed people from the finance industry both from India and abroad.
Mr. K. V. Kamath - Chairman Mr. Barry Stowe Dr. (Mrs.) Swati A. Piramal Ms. Kalpana Morporia Mr. Nimesh Shah Mr. Vikram B. Trivedi Mr. Vijay Thacker Mr. Nilesh Shah
Topic of my summer training project is ‘ Creative Awareness About Mutual Funds Products ’
At a time when banks are finding it difficult to rely solely on core banking business, as the interest rates are high, they are vying with one another to adopt innovative ways to woo customers.
While ICICI Prudential AMC is concentrating more on non-
interest income and is aiming to make its foray in the mutual fund and insurance business, banks like Bank of Baroda and Union Bank of India are paying more attention to SMEs and agriculture businesses.
There are wide variety of Mutual Fund schemes that cater to investor needs, whatever the age, financial position, risk tolerance and return expectations. The mutual fund schemes can be classified according to both their investment objective (like income, growth, tax saving) as well as the number of units (if these are unlimited then the fund is an open-ended one while if there are limited units then the fund is close-ended).
These funds are sold at the NAV based
prices, generally calculated on every business day. These schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity - i.e. there is no cap on the amount you can buy from the fund and the unit capital can keep growing. These funds are not generally listed on any exchange.
ICICI Prudential Tax Plan ICICI Prudential SHORT TERM PLAN ICICI Prudential GILT FUND (Treasury Plan) ICICI Prudential GILT FUND (Investment Plan) ICICI Prudential INCOME PLAN ICICI Prudential FLEXIBLE INCOME PLAN ICICI Prudential MONTHLY INCOME PLAN ICICI Prudential INCOME MULTIPLIER FUND – Regular Plan ICICI Prudential BALANCED FUND ICICI Prudential GROWTH PLAN ICICI Prudential TAX PLAN ICICI Prudential TECHNOLOGY FUND ICICI Prudential DYNAMIC PLAN ICICI Prudential POWER ICICI Prudential EMERGING S.T.A.R. (Stocks Targeted At Returns) FUND ICICI Prudential DISCOVERY FUND ICICI Prudential SERVICES INDUSTRIES FUND ICICI Prudential INDEX FUND ICICI Prudential INFRASTRUCTURE FUND ICICI Prudential CHILD CARE PLAN
Schemes that have a stipulated maturity period, limited capitalization and the units are listed on the stock exchange are called close-ended schemes.
These schemes have historically seen a lot of subscription. This popularity is estimated to be on account of firstly, public sector MFs having floated a lot of close-ended income schemes with guaranteed returns and secondly easy liquidity on account of listing on the stock exchanges.
The Closed-ended fund managed by ICICI Prudential Mutual Fund is ICICI Premier.
Mutual funds have specific investment objectives such as growth of capital, safety of principal, current income or tax-exempt income. In general mutual funds fall into three general categories:
Equity Funds invest in shares or equity of companies.
Fixed-Income funds invest in government or corporate securities that offer fixed rates of return.
Balanced Funds invest in a combination of both stocks and bonds.
Growth Funds : These funds seek to provide growth of capital with secondary emphasis
on dividend. They invest in shares with a potential for growth and capital appreciation. Because they invest in well-established companies where the company itself and the industry in which it operates are thought to have good long-term growth potential, growth funds provide low current income. Growth funds generally incur higher risks than income funds in an effort to secure more pronounced growth.
Growth and Income Funds : Growth and income funds seek long-term growth of capital as well as
current income. The investment strategies used to reach these goals vary among funds. Some invest in a dual portfolio consisting of growth stocks and income stocks, or a combination of growth stocks, stocks paying high dividends, preferred stocks, convertible securities or fixed-income securities such as corporate bonds and money market instruments. Others may invest in growth stocks and earn current income by selling covered call options on their portfolio stocks.
The goal of fixed income funds is to provide current income consistent with the preservation of capital. These funds invest in corporate bonds or government-backed mortgage securities that have a fixed rate of return. Within the fixed-income category, funds vary greatly in their stability of principal and in their dividend yields. High-yield funds, which seek to maximize yield by investing in lower-rated bonds of longer maturities, entail less stability of principal than fixed-income funds that invest in higher-rated but lower-yielding securities.
Balanced Fund :
The Balanced fund aims to provide both growth and income. These funds invest in both shares and fixed income securities in the proportion indicated in their offer documents. Ideal for investors who are looking for a combination of income and moderate growth.
Money Market Funds/Liquid Funds :
For the cautious investor, these funds provide a very high stability of principal while seeking a moderate to high current income. They invest in highly liquid, virtually risk-free, short-term debt securities of agencies of the Indian Government, banks and corporations and Treasury Bills.
Professional investment management Diversification Low Cost Convenience and Flexibility Liquidity Transparency Variety Choice of Investment Professional Financial Experts
Investor Psychology Risk Choice Risks Cost Risks Prediction Risks Jargon Risks Competition Risks Risk of Redemption Restrictions Management Change Judgement Risks Forward Pricing Risks
When you invest in one mutual fund, you instantly spread your risk over a number of different companies. You can also diversify over several different kinds of securities by investing in different mutual funds, further reducing your potential risk. Diversification is a basic risk management tool that you will want to use throughout your lifetime as you rebalance your portfolio to meet your changing needs and goals.
Systematic Investment Plan (SIP)
The Unit holders of the Scheme can benefit by investing specific Rupee amounts periodically, for a continuous period. Mutual fund SIP allows the investors to invest a fixed amount of Rupees every month or quarter for purchasing additional units of the Scheme at NAV based prices.
The Term Net Asset Value (NAV) is used by investment companies to measure net assets. It is calculated by subtracting liabilities from the value of a fund's securities and other items of value and dividing this by the number of outstanding shares. Net asset value is popularly used in newspaper mutual fund tables to designate the price per share for the fund.
Calculating Mutual Funds net asset values is easy. Simply take the current market value of the fund's net assets (securities held by the fund minus any liabilities) and divide by the number of shares outstanding. So if a fund had net assets of Rs.50 lakh and there are one lakh shares of the fund, then the price per share (or NAV) is Rs.50.00.
The company should provide more range of services to its customer especially to the small time who want to invest their earnings by the end of the day.
The company should emphasize on advertising its schemes and services. The company should pay more stress on rural area development. The company should expand its business by opening more branches.
Introduce some good insurance plans for females & for Rural areas people. Increase area of working by spreading awareness among people about
If the company starts to concentrate on village segment market. Then company can get great business.