SUMMER INTERNSHIP PROJECT REPORT

ON

CUSTOMER AWARENESS ON MUTUAL FUNDS

CARRIED ON AT

ICICI Securities

SUBMITTED TO

PILLAI’S INSTITUTE OF MANAGEMENT STUDIES AND RESEARCH

UNDER THE GUIDANCE OF

PROF. C R S PILLAI

SUBMITTED BY:

Nidhi Ashok Bangera

Roll no - 04

1
 DECLARATION

I hereby declare that the project report entitled, “MUTUAL FUND SIMPLIFIED BY ICICI
SECURITIES LTD” submitted to Pilla’s Institute of Management Studies & Research
(PIMSR), Panvel (Navi Mumbai), is a record of the original work done by me under the
guidance of Prof. C. R. S Pillai , and this project work is submitted in 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: Navi Mumbai Nidhi Ashok Bangera

Date: MMS-Finance

Roll No: 04

2
 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 “Mutual Funds Simplified
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. C R S Pillai, 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.
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.

Nidhi Ashok Bangera

(Pillai’s Institute of Management Studies & Research)

3
 CERTIFICATE

This is to certify that Ms. Nidhi Ashok Bangera, Roll number 04, a student of Masters in
Management Studies in Pillai’s Institute of Management Studies and Research, has carried
out the Summer Internship Project work presented in this report titled “A Study on Customer
awareness on Mutual fund”, under my guidance.

(Signature) (Signature)

Prof. C R S Pillai Dr. Satish K. Nair

Date: Date:

4
5
 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 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 44 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 known 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

6
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 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

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 Table of Content

Sr No Content Page No.

Chapter I
Mutual Funds
Objective of study
1. Research Methodology 9
Literature Survey
Scope of Study
Limitations
Chapter II
Company Profile
Introduction
Overview
2. 20
Brief about ICICI group
Mission and vision of ICICI group
Introduction to ICICI Direct
Awards
Chapter III
3. 36
Mutual Fund Working
Chapter IV
4. 39
Data Analysis and Interpretations
Chapter V
Findings
5. 50
Suggestions and Recommendations
Conclusion

6. Bibliography 54

7. Annexure 55

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CHAPTER –I

MUTUAL FUNDS
9
A Mutual Fund is set up in the form of a trust, which has a sponsor, trustees, and asset
management company (AMC) and custodian. The trust is established by a sponsor or more
than one sponsor who is like a promoter of a company. The trustees of the Mutual Fund hold
its property for the benefit of the unit holders. Asset Management Company (AMC) approved
by SEBI manages the funds by making investments in various types of securities. Custodian,
who is registered with SEBI, holds the securities of various schemes of the fund in its
custody. The trustees are vested with the general power of superintendence and direction over
AMC. They monitor the performance and compliance of SEBI regulations by the Mutual
Fund.

ADVANTAGES OF MUTUAL FUNDS

Mutual funds have designed to provide maximum benefits to investors, and fund manager
have research team to achieve schemes objective. Assets Management Company has different
type of sector funds, which need to proper planning for strategic investment and to achieve
the market return.

1. PORTFOLIO DIVERSIFICATION

Mutual Funds invest in a well-diversified portfolio of securities, which enables investor to

hold a diversified investment portfolio (whether the amount of investment is big or small).

2. PROFESSIONAL MANAGEMENT

Fund manager undergoes through various research works and has better investment
management skills, which ensure higher returns to the investor than what he can manage on
his own.

3. LESS RISK: -Investors acquire a diversified portfolio of securities even with a small

Investment in a Mutual Fund. The risk in a diversified portfolio is lesser than investing in

merely 2 or 3 securities.

4. LOW TRANSACTION COSTS: -Due to the economies of scale (benefits of larger

volumes), mutual funds pay lesser transaction costs. These benefits are passed on to the
investors.

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5. LIQUIDITY: -An investor may not be able to sell some of the shares held by him very
easily and quickly, whereas units of a mutual fund are far more liquid.

6. CHOICE OF SCHEMES: -Mutual funds provide investors with various schemes with
different investment objectives. Investors have the option of investing in a scheme having a
correlation between its investment objectives and their own financial goals. These schemes
further have different plans/options

7. TRANSPARENCY: -Funds provide investors with updated information pertaining to the

markets and the schemes. All material facts are disclosed to investors as required by the
regulator.

8. FLEXIBILITY: - Investors also benefit from the convenience and flexibility offered by
Mutual Funds. Investors can switch their holdings from a debt scheme to an equity scheme
and vice-versa. Option of systematic (at regular intervals) investment and withdrawal is also
offered to the investors in most open-end schemes.

9. SAFETY: -Mutual Fund industry is part of a well-regulated investment environment where

the interests of the investors are protected by the regulator. All funds are registered with SEBI
and complete transparency is forced.

DISADVANTAGES OF MUTUAL FUNDS

The mutual fund not just advantage of investor but also has disadvantages for the funds. The
fund manager not always made profits but might create loss for not properly managed. The
fund have own strategy for investment to hold, to sell, to purchase unit at particular time.

1. COSTS CONTROL NOT IN THE HANDS OF AN INVESTOR: -Investor has to pay

investment management fees and fund distribution costs as a percentage of the value of his
investments (as long as he holds the units), irrespective of the performance of the fund

2. NO CUSTOMIZED PORTFOLIOS: -The portfolio of securities in which a fund invests is

a decision taken by the fund manager. Investors have no right to interfere in the decision
making process of a fund manager, which some investors find as a constraint in achieving
their financial objectives.

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DIFFERENT TYPES OF MUTUAL FUNDS

(A) ON THE BASIS OF OBJECTIVE:

1. EQUITY FUNDS/ GROWTH FUNDS: Funds that invest in equity shares are called
equity funds. They carry the principal objective of capital appreciation of the
investment over the medium to long-term. The returns in such funds are volatile since
they are directly linked to the stock markets. They are best suited for investors who
are seeking capital appreciation. There are different types of equity funds such as
Diversified funds, Sector specific funds and Index based funds.
2. DIVERSIFIED FUNDS: These funds invest in companies spread across sectors.
These funds are generally meant for risk-taking investors who are not bullish about
any particular sector.
3. SECTOR FUNDS: These funds invest primarily in equity shares of companies in a
particular business sector or industry. These funds are targeted at investors who are
extremely bullish about a particular sector.
4. INDEX FUNDS: These funds invest in the same pattern as popular market indices
like S&P 500 and BSE Index. The value of the index fund varies in proportion to the
benchmark index.
5. TAX SAVING FUNDS: These funds offer tax benefits to investors under the Income
Tax Act. Opportunities provided under this scheme are in the form of tax rebates U/s
88 as well saving in Capital Gains U/s 54EA and 54EB. They are best suited for
investors seeking tax concessions.
6. DEBT / INCOME FUNDS: These Funds invest predominantly in high-rated fixed-
income bearing instruments like bonds, debentures, government securities,
commercial paper and other money market instruments. They are best suited for the
medium to long-term investors who are averse to risk and seek capital preservation.
They provide regular income and safety to the investor.
7. LIQUID FUNDS / MONEY MARKET FUNDS: These funds invest in highly liquid
money market instruments. The period of investment could be as short as a day. They
provide easy liquidity. They have emerged as an alternative for savings and short-
term fixed deposit accounts with comparatively higher returns. These funds are ideal
for Corporates, institutional investors and business houses who invest their funds for
very short periods.
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 8. GILT FUNDS: These funds invest in Central and State Government securities. Since
they are Government backed bonds they give a secured return and also ensure safety
of the principal amount. They are best suited for the medium to long-term investors
who are averse to risk.
9. BALANCED FUNDS: These funds invest both in equity shares and fixed-income-
bearing instruments (debt) in some proportion. They provide a steady return and
reduce the volatility of the fund while providing some upside for capital appreciation.
They are ideal for medium- to long-term investors willing to take moderate risks.
10. HEDGE FUNDS: These funds adopt highly speculative trading strategies. They
hedge risks in order to increase the value of the portfolio.

(B) ON THE BASIS OF FLEXIBILITY

1) OPEN-ENDED FUNDS: These funds do not have a fixed date of redemption.

Generally they are open for subscription and redemption throughout the year. Their
prices are linked to the daily net asset value (NAV). From the investors' perspective,
they are much more liquid than closed-ended funds.
2) CLOSE-ENDED FUNDS: These funds are open initially for entry during the Initial
Public Offering (IPO) and thereafter closed for entry as well as exit. These funds
have a fixed date of redemption. One of the characteristics of the close-ended
schemes is that they are generally traded at a discount to NAV; but the discount
narrows as maturity nears. These funds are open for subscription only once and can
be redeemed only on the fixed date of redemption. The units of these funds are listed
(with certain exceptions), are tradable and the subscribers to the fund would be able
to exit from the fund at any time through the secondary market.
3) INTERVAL FUNDS: These funds combine the features of both open-ended and
close ended funds wherein the fund is close ended for the first couple of years and
open-ended thereafter. Some funds allow fresh subscriptions and redemption at fixed
times every year (say every six months) in order to reduce the administrative aspects
of daily entry or exit, yet providing reasonable liquidity

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 OBJECTIVE OF STUDY

 To create awareness to its customer about Mutual Fund.

 To know about response of the customer for future investments in mutual fund.


RESEARCH METHODLOGY

Research methodology is a methodology for collecting all sorts of information & data
pertaining to the subject in question. The objective is to examine all the issues involved &
conduct situational analysis. The methodology includes the overall research design, sampling
procedure & fieldwork done & finally the analysis procedure. The methodology used in the
study consistent of sample survey using primary data. The primary data has been collected
with the help of questionnaire.

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 LITERATURE REVIEW

 SAHIL JAIN measured the performance of the equity based mutual funds in India.
The assets under management in this industry is more than Rs 6.8 thousand billion.
The Indian market is flooded with more than a thousand mutual fund schemes,
promising better returns than others. A total of 45 schemes offered by 2 private sector
companies and 2 public sector companies, have been studied over the period April
1997 to April 2012 (15 years). The analysis has been made using the risk-return
relationship and Capital Asset Pricing Model (CAPM). The overall analysis finds that
HDFC and ICICI have been the best performers, UTI an average performer and LIC
the worst performer which gave below- expected returns on the risk-return
relationship.

 According to CRISIL Mutual Fund Year book Apr 2013, In 2012 Equities emerged
as the star performer with the benchmark CNX Nifty gaining 28%. The debt market
too performed well with long-term debt funds gaining prominence due to some
easing of monetary stance by the Reserve Bank of India (RBI) and expectations of
further easing by the central bank to pump prime the economy. The mutual fund
industry’s average assets under management (AUM) grew by 15% in 2012 to Rs 7.87
trillion in December 2012; debt funds’ AUM rose by over 26% to Rs 5.34 trillion and
equity funds’ AUM by 19% to Rs 1.92 trillion. The focus on retail investors and
improving the penetration of mutual funds continued through the year with Securities
and Exchange Board of India (SEBI) announcing various guidelines to promote
investor education reduces operational bottlenecks and costs. Further, SEBI doled out
incentives to fund houses that distribute their products beyond the top 15 cities.
Single plan structures and introduction of direct plans were other investor friendly
measures introduced by the regulator.

 VIJAYALAKSHMI SUNDAR measured that Mutual funds in India are becoming an

ideal investment choice compared to safe investments such as Fixed Deposits and
postal which gives comparatively low returns. Since the year 2003 from which the
present stage of bull run in the Indian capital markets began, the mutual fund industry
While the growth in terms of the AUM was subdued over the period from 2009-2013,
15
 it has gained unprecedented momentum over the four year period until March 2013.
The growth of the capital markets in terms of BSE -30 shares Sensex has been still
higher, and the banking sector has been on a roll over the last couple of years,
throwing up huge opportunities for wealth creation on the way. As the Indian
economy does well with over recent times, banks tend to be one of the biggest
beneficiaries. In fact, post the global financial crisis of 2008 and 2009, the banking
index delivered a return of 82% during May 2009 until October 2010, compared to a
return of 40% delivered by the broader market. Investment in banking sector funds is
one of the best avenue which guarantees stable return with medium risk when
compare to other sectors.

 JAFRI ARSHAD HASAN measured that Indian mutual fund industry is going
through a very crucial phase because of the changing regulations and confusing
atmosphere. In this study he discusses the impact of regulatory changes by SEBI on
mutual fund industry and it’s after affects. It will also throw some light on the
international factors that affected Indian mutual fund industry and its sentiments. At
the end of the, there will be some suggestions for the regulator, the intermediaries
and the Investors. This is an attempt to minimize the level of negativity and
pessimism from the market and to create an atmosphere of trust, information and
optimism.
 According to CII, all efforts at the moment are being synchronized towards attaining
the objective of financial inclusion. The drive to expand reach beyond Tier 1 cities
and make mutual fund offerings available to people in smaller towns and cities has
indeed taken up the attention of the industry. However, several components of such
an initiative, like investor awareness, broadening investor participation and product
innovation, need to be aligned in order to fully establish inclusive growth. The
industry needs to give due emphasis on the above factors, drawing out an efficient
business and operating model to ensure that the inherent challenges that the industry
is facing is efficiently dealt with. Designing a competent and all pervasive business
model has all the more become important in the current scenario of changing
business and regulatory legislations.

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 According to KPMG report, The Mutual fund industry needs to have an ‘outside-in’
perspective as compared to ‘inside-out’ perspective. Understanding investors’ needs
should be followed by a product channel alignment. A number of change catalysts
discussed in the previous section like technology, investment in B-15 cities,
investment adviser etc. would be required to help ensure the overall objective of
prudent growth and profitability. Investor awareness campaigns should be conducted
to increase the AUM in smaller cities which would help industry to progress in a
holistic manner. AMC, distributors and IFAs are all doing their bit but AMFI and
SEBI should also play a major role in creating awareness. For future growth, tax
could act as an enabler as tax benefits can be a pull factor for investors. The future
potential of Investment Advisors could be decided by Investors and the regulators.
Presence of an unbiased advisor could build investor trust on the one hand and
reward performing products on the other.

 According to CII Mutual fund summit 2013, the outlook of the mutual fund industry
is governed to a great extent by the economic situation in the country. The current
economic scenario with sticky inflation and rising fuel prices is likely to adversely
impact perceptions, resulting in depressed equity inflows into the market. They
believe that the mutual fund industry manifests huge opportunity for growth and
further penetration, and this can be achieved over time, with support from
technology. The key lies in strengthening distribution networks and enhancing levels
of investor education to increase presence in rural areas. In terms of opportunity, the
infrastructure debt market has become very attractive, luring investors to invest in
this space.

 According to Ms. Avani shah, Faculty Shree Chimanbhai Patel Institute of

Management and Research, Ahmedabad, and Dr. Narayan baser Associate Professor,
Shri Jairambhai Patel Institute of Management and Computer Application,
Ghandhinagar, found that a mutual fund is a common pool of money into which
investors place their contributions that are to be invested in accordance with a stated
objective. Being a part of financial markets although mutual funds industry is
responding very fast by analyze investor’s perception and expectations. In their study
research of 305 mutual fund investors was conducted in Ahmedabad using non-
17
 probability convenience sampling. After using One-Way ANNOVA, researcher had
come to a conclusion that Funds reputation, Withdrawal facilities, brand name,
Sponsor’s past performance in terms of risk & return varies among the investors of
different age group & investor’s different occupation group

 According to Prof Gauri Prabhu Associate Professor AISSMS Institute of

Management, Pune and Dr. N.M. Vechalekar Associate Dean, IndSearch, Pune, the
Mutual Funds provide a platform for a common investor to participate in the Indian
capital market with professional fund management irrespective of the amount
invested. The Indian mutual fund industry is growing rapidly and this is reflected in
the increase in Assets under management of various fund houses. Mutual fund
investment is less risky than directly investing in stocks and is therefore a safer option
for risk averse investors. Monthly Income Plan funds offer monthly returns and invest
majorly in debt oriented instruments with little exposure to equity. However it has
been observed that most of the investors are not aware of the benefits of investment in
mutual funds. This is reflected from the study conducted in this research paper. This
paper makes an attempt to identify various factors affecting perception of investors
regarding investment in Mutual funds.

 According to Deepti Goel Dept. of Economics, Assistant Professor, PGDAV College,

D.U., India and Richa Gupta Dept. of Commerce Assistant Professor PGDAV
College, D.U., India found that the landscape of the financial sector in India is
continuously evolving, accredited to regulatory changes being undertaken, which is
leading market participant like the asset management companies (AMCs) and
distributors to restructure their strategies and adopt business models which will yield
sustainable benefits. Some of the other trends which have emerged strongly over the
past year are heavy outflows triggered by market volatility and partnering of asset
management companies with banks, to increase the strength of distribution networks.

18
 SCOPE OF THE STUDY

 All the analysis and suggestions are based on the analysis of the primary data, which
I will collect with the help of questionnaire.
 A big boom has been witnessed in Mutual Fund Industry in recent times. A large
number of new players have entered the market and trying to gain market share in
this rapidly improving market.

LIMITATIONS OF THE STUDY-

 I had to rely upon the information given to me by the customers to arrive at

conclusion. Their responses might not be fully true.
 This study is only limited to Navi Mumbai, therefore the conclusion may not be
universally applicable.
 Since the researcher is a student, she lacked professional approach.

19
CHAPTER –II

20
COMPANY PROFILE

Company Name ICICI Securities

Founded in 1995
Parent Company ICICI Limited
Headquarter Mumbai
Chairperson Mrs. Chanda D. Kochhar
Website www.icicisecurities.com

INTRODUCTION

ICICI Securities Limited provides various investment banking products and services to
corporates, financial institutions, and retail investors in India and internationally. It provides
corporate finance services to corporations, financial institutions, financial sponsors, and
government, which include equity capital market products, such as initial public offerings
(IPO), further public offerings, rights offerings, convertible offerings, qualified institutional
placements, non-convertible debentures, buyback, delisting, and open offers and international
offerings for unlisted and listed entities. The company also offers mergers and acquisitions
advisory services; and private equity advisory.

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 OVERVIEW

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

22
 BRIEF ABOUT ICICI GROUP

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at
the initiative of the World Bank, the Government of India and representatives of Indian
industry, with the objective of creating a development financial institution for providing
medium-term and long term project financing to Indian businesses. Mr.A.Ramaswami
Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source
of foreign currency loans to Indian industry. Besides funding from the World Bank and other
multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from
international markets.

HISTORY OF ICICI GROUP:-

1986:

 ICICI became the first Indian institution to receive ADB Loans.

 ICICI, along with UTI, set up Credit Rating Information Services of India Limited,
India's first professional credit rating agency.
 ICICI promotes Shipping Credit and Investment Company of India Limited.

1987:

 The Corporation made a public issue of Swiss Franc 75 million in Switzerland, the
first public issue by any Indian entity in the Swiss Capital Market.

1988:

 ICICI signed a loan agreement for Sterling Pound 10 million with Commonwealth
Development Corporation (CDC), the first loan by CDC for financing projects in
India.

1993:

 Promoted TDICI - India's first venture capital company.

23
1994:

 ICICI Securities and Finance Company Limited in joint venture with J. P. Morgan set
up.

1996:

 ICICI Asset Management Company set up.

 ICICI Bank set up.
 ICICI Ltd became the first company in the Indian financial sector to raise GDR.

1997:

 ICICI merged with ICICI Ltd.

 Mr. K.V.Kamath appointed the Managing Director and CEO of ICICI Ltd.
 ICICI Ltd was the first intermediary to move away from single prime rate to three-
tier prime rates structure and introduced yield-curve based pricing.

1998:

 The name The Industrial Credit and Investment Corporation of India Ltd changed to
ICICI Ltd.
 ICICI Ltd announced the takeover of ITC Classic Finance.

1999:

 Introduced the new logo symbolizing a common corporate identity for the ICICI
Group.
 ICICI announced takeover of Anagram Finance.

2000:

 ICICI launched retail finance - car loans, house loans and loans for consumer
durables
 ICICI becomes the first Indian Company to list on the NYSE through an issue of
American Depositary Shares.

24
2001:

 ICICI Bank became the first commercial bank from India to list its stock on NYSE.
 The Boards of ICICI Ltd and ICICI Bank approved the merger of ICICI with ICICI
Bank.
 ICICI Bank announces merger with Bank of Madura.

2002:

 ICICI Ltd merged with ICICI Bank Ltd to create India's second largest bank in terms
of assets.
 "E Lobby,” a self-service banking center inaugurated in Pune. It was the first of its
kind in India.
 ICICI Bank launched Private Banking.
 1100-seat Call Centre set up in Hyderabad
 ICICI Bank Home Shoppe, the first-ever permanent aggregation and display of
housing projects in the county, launched in Pune,
 ATM-on-Wheels, India's first mobile ATM, launched in Mumbai.

2003:

 The first Integrated Currency Management Centre launched in Pune.

 ICICI Bank announced the setting up of its first ever-offshore branch in Singapore.
 ICICI Bank's UK subsidiary launched.
 India's first ever "Visa Mini Credit Card,” a 43% smaller credit card in dimensions
launched.
 ICICI Bank subsidiary set up in Canada.
 Temasek Holdings acquired 5.2% stake in ICICI Bank.
 ICICI Bank became the market leader in retail credit in India.

2004:

 Max Money, a home loan product that offers the dual benefit of higher eligibility and
affordability to a customer, introduced
 Mobile banking service in India launched in association with Reliance Infocomm.
 India's first multi-branded credit card with HPCL and Airtel launched.

25
  Kisaan Loan Card and innovative, low-cost ATMs in rural India launched.

2005:

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

2006:

 ICICI Bank became the first private entity in India to offer a discount to retail
investors for its follow-up offer.
 ICICI Bank became the first Indian bank to issue hybrid Tier-1 perpetual debt in the
international markets.
 ICICI Bank subsidiary set up in Russia.

26
2007:

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

2008:

 ICICI Bank enters US, launches its first branch in New York.
 ICICI Bank launched iMobile, a breakthrough innovation in banking where
practically all internet-banking transactions can now be simply done on mobile
phones.
27
  ICICI Bank concluded India's largest ever securitization transaction of a pool of retail
loan assets aggregating to Rs. 48.96 billion (equivalent of USD 1.21 billion) in a
multi-tranche issue backed by four different asset categories. It is also the largest deal
in Asia (e.g.-Japan) in 2008 till date and the second largest deal in Asia (e.g.-Japan &
Australia) since the beginning of 2007

2009:

 Ms.Chanda D Kochhar appointed the Managing Director and CEO of ICICI Bank
Ltd.
 ICICI Bank and Singapore Airlines launch "ICICI Bank Singapore Airlines Visa
Platinum Credit Card"
 ICICI Bank ties up with BSNL Cell One for bill payments.

2010:

 ICICI Bank launches website in Hindi.

 ICICI Bank opens first retail branch in Singapore.
 RBI approves the amalgamation of Bank of Rajasthan Ltd with ICICI Bank Ltd.
 First private sector Bank to inaugurate its 2000 Branch.

2011:

 ICICI Bank offers cash withdrawal at POS terminals

 ICICI Bank & Vodafone Essar ink pact for financial inclusion
 ICICI Bank & Indian Army sign MoU for banking services
 ICICI Bank and Intuit launch "Money Manager"
 ICICI Bank Limited Opens Second Retail Branch in Singapore

2012:

 ICICI Bank rolls out 25 electronic branches and launches many next generation
banking solutions
 ICICI Bank was the first private sector bank in India to offer PPF account facility at
all bank branches.
 Among the first banks to introduce account portability and also the only bank to offer
portability on two additional channels - Internet banking and Phone Banking.
28
  ICICI Bank launches its official Facebook Page. First bank in India to offer one-of-its
kind "Your Bank Account" App, which allows access to bank account information on
Facebook.

2013:

 ICICI bank has been adjudged winner at the express IT Innovation award under the
large Enterprise category.
 ICICI bank wins awards under the categories of ‘Most Innovative Bank’ and ‘Most
innovative use of Multichannel Infrastructure’ at the Indian Bank’s Association’s
BANCON Innovation Awards 2013.
 ICICI bank won the Asian Banking & Finance retail banking award 2013 for the
online banking Initiative of the year. ICICI bank won an award under the social
media category at the information week EDGE award
 ICICI bank received the award for ‘Best Private Sector Banker’ by the Sunday
standard best bankers Awards 2013.

2014:

 Ms. Chanda Kochhar received an honorary Doctor of Laws from Carleton University,
Canada. The university conferred the award on Ms. Kochhar in recognition of her
pioneering work in the financial sector, effective leadership in a time of economic
crisis and support for engaged business practices.
 Ms. Chanda Kochhar featured in the Telegraph (UK) list of 11 most important women
in Finance.
 ICICI bank has been recognized as one of the top companies for leaders in India in a
study conducted by Aon Hewitt.
 IDRBT has given awards to ICICI Bank In the categories of ‘Social Media and
Mobile Banking’ and ‘Business Intelligence Initiatives.

2015:

 ICICI bank has been adjudged the ‘Best Retail Bank in India’ By the Asian Banker.
It has also emerged winners in the categories of ‘Best internet Banking Initiative’. It
has also emerged winners in the categories of ‘Best Internet Banking Initiative’ and
Best Customer Risk Management initiative’ Awards given by the Asian Banker.
29
  ICICI bank has been declared as the first runner up at outlook money awards 2015 in
the category of ‘Best Bank’.
 ICICI bank Won an award in the BFSL leadership summit awards in the, Best phone
banking for End users’ category.

2016

 ICICI Bank wins the National Securities Depository Limited Top Performer Award
for opening the highest number of demat accounts in 2016
 ICICI Bank is awarded the ‘Best Bond House’-Domestic at the Asset Triple A
Country Awards 2016.
 ICICI Bank wins the award in the ‘Best Syndicated Loan’ category at the Asset Triple
A Country Awards 2016.

2017

 Ms. Chanda Kochhar became the first leader to receive the Woodrow Wilson Award
for Global Corporate Citizenship by the Woodrow Wilson Centre located in
Washington, U.S.A.
 ICICI Bank was declared runner-up in the 'Best Large Bank' category, according to
the Businessworld Best Bank Survey 2016.
 ICICI Bank was recognised by the Ministry of Rural Development, Government of
India, for the funding provided to Self Help Groups across rural India. This funding
supported the growth of the National Rural Livelihood Mission programme initiated
by the Government.

30
ICICI GROUP COMPANIES

 ICICI Bank
 ICICI Prudential Life Insurance Company
 ICICI Securities Limited
 ICICI Securities Primary Dealership Limited
 ICICI Lombard General Insurance Company
 ICICI Prudential Asset Management Company
 ICICI Venture
 ICICI Home Finance Company

31
 VISION & MISSION OF ICICI GROUP

VISION: To be the leading service provider of financial services in India.

MISSION: We will leverage our people, technology, speed and financial capital to:-

 Be the banker of first choice for our customers by delivering high quality, excellent
products and services.
 Expand the frontiers of our business globally.
 Play a proactive role in the full realisation of India’s potential.
 Maintain a healthy financial profile and diversify our earnings across businesses and
geographies.
 Maintain high standards of governance and ethics.
 Contribute positively to the various countries and markets in which we operate.
 Create value for our stakeholders.

PRIVACY POLICY: - ICICI is strongly committed to protecting the privacy of its

customers.

DNC (DON'T CALL REGISTRY):- ICICI do respect your privacy, and appreciate that
someof you may not want to be contacted over the phone for our telemarketing activities. If
this is the case with you, you may use the Do Not Call form given below and register your
phone number(s) that you want excluded from our telemarketing list. The details that you
enter in the form will remain confidential

CODE OF CONDUCT AND BUSINESS ETHICS: -ICICI Group expects all its
employees, officers and directors to act in accordance with high professional and ethical
standards.

32
 INTRODUCTION TO ICICI DIRECT

ICICI Direct is an online trading and investment platform on ICICI Securities, the largest
stock broker firm in India providing a wide range of investment options to the retail and
institutional customers. ICICI Securities is part of ICICI Group, India's top financial service
provider offering banking and other financial services.

ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers.

ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading
platform lunched in India to provide browser based equity, commodity and currency trading;
all under one login.

ICICIdirect.com is the most visited investment portal in India and by NRI's living across
countries.

It is one website, which provides options to invest in over 20 financial products including
Equity, Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits, Loans, Tax
Services, New Pension Systems and Insurance.

ICICI direct also provide current stock market information which includes stock prices, news,

market research reports, stocks tips, events, IPO News and company results. Its 'Centre for

Financial Learning' initiative offers number of online and classroom programs for investors.

The 3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and
ICICI Demat Account, is the best offering for retail investors in India as it provides easiest
way to invest in stock market and other financial instruments. The customers can visit any of
the over 1500 ICICI Bank branches to get help on financial products which are sold through
ICICI direct.

33
 AWARDS AND ACCOLADES

 Franchisor of the year award 2009

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

34
MAJOR COMPETITORS:

 HDFC Securities
 Kotak Securities
 SBI Capital
 Sharekhan Broker
 IDBI Capital
 HSBC InvestDirect
 Indiabulls Services
 Reliance Securities
 Bajaj Capital
 5paisa.com
 Motilal Oswal
 Reliance Capital

ICICI DIRECT'S TRADING PLATFORMS:

ICICI Direct offers 2 trading platforms to its customers:-

1. SHARE TRADING ACCOUNT (WEBSITE BASED TRADING)

Website based online Share Trading Account by ICICIDirect is primarily for buying and
selling of stocks at BSE and NSE. The ICICIDirect website allows Cash Trading, Margin
Trading, MarginPLUS Trading, Spot Trading, Buy Today Sell Tomorrow, IPO Investment,
Mutual Fund Investment etc. ICICIDirect.com website is the primary Investment vehicle of
ICICI Limited.

2. TRADE RACER (TRADING TERMINAL)

Trade Racer is a power packed Trading platform, which provides an investor with Live
streaming quotes & Research Calls, integrated fund transfer system along with multiple
watch list facility. Investor can also do technical analysis with the help advance charting
tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated
Fund Transfer System, Customized Interface, Intra-day and EOD Charts and Shortcut keys
for faster access to markets are some of the key features of Trade Racer Terminal.

35
CHAPTER –III

36
 How mutual funds work

A mutual fund is a collection of investments, such as stocks, bonds and other funds owned by
a group of investors and managed by a professional money manager. The investment
objective of the mutual fund determines what types of securities it buys. A mutual fund can
focus on specific types of investments. For example, a fund may invest mainly in government
bonds, stocks from large companies, or stocks from certain countries. Or, it may invest in a
variety of investments.
When you buy a mutual fund, you’re pooling your money along with other investors. You put
money into a mutual fund by buying units or shares of the fund. As more people invest, the
fund issues new units or shares.
The investments in a mutual fund are managed by a portfolio manager. They manage the fund
on a day-to-day basis, deciding when to buy and sell investments according to the investment
objectives of the fund.

4 things to know
Risk – The level of risk and return depends on what the fund invests in. Mutual funds are not
guaranteed or insured by the Canada Deposit Insurance Corporation (CDIC) or any other
government agency – even if you buy through a bank and the fund carries the bank’s name.
You can lose money investing in mutual funds.
Past performance – How a fund has performed in the past can’t tell you how it will perform
in the future. But past performance can help you determine how volatile or risky the fund’s
returns may be.
Price to buy and sell – You buy mutual funds at the fund’s net asset value (NAV) plus any
sales charges. Mutual funds are redeemable – you can sell your mutual funds at the current
NAV less any fees and charges for redemption.
Fees – All mutual funds have fees and expenses that reduce your investment return.

37
Net asset value (NAV)

When you purchase or redeem securities of a mutual fund, you pay or receive what is known
as the net asset value (NAV) of the security at the time of purchase, switch or redemption.
Most mutual funds report their NAV daily in the business section of many newspapers, or on
the fund manager’s website. NAV represents the mutual fund’s assets less its liabilities. NAV
will fluctuate with changes in the market value of the mutual fund’s particular investments.

2 ways to make money on a mutual fund

Capital gains – If you sell your mutual fund for more than you paid for it, you will have a
capital gain. If you sell your mutual fund for less than you paid for it, you will have a capital
loss.
Distributions – Depending on the type of fund you buy, you may also receive distributions of
dividends, interest, capital gains or other income the fund earns on its investments. You can
choose to receive distributions in cash or have them reinvested in the fund for you. Unless
you ask for the distributions to be paid in cash, the mutual fund will usually reinvest the
distributions for you.

38
CHAPTER –IV

39
 DATA ANALYSIS AND INTERPRETATION

Ques.1 What is your Qualification?

(a) Under-graduation (b) Graduation (c) Post Graduation
(d) Others

Responses Under-graduate
Other 2%
0%

Post Graduation
27%

Graduation
71%

Analysis:
It is seen in the above diagram that most of the respondents are graduates and many are post
graduates. The very few population are under graduates and others. 71% of the respondents
are Graduates. 27% of the respondents are post graduates. 2% of them are under graduates.

40
Ques.2 What is your Occupation?
(a) Government (b) Private (c) Business (d) Others

Responses Government
2%

Other
9%

Business
14%

Private
75%

Analysis:
Many of the respondents are working in the private firm other than business and government
sectors. 75% of the respondents are working in the Private sector. 14% of the respondents are
having their own business. 9% are others and only 2% of the respondents are working in the
government sector.

41
Ques.3 What is your monthly family income?
(a) <=10000 (b) 10001-20000 (c) 20001-30000 (d) >30000

Responses
>10000 10000-20000 20000-30000 <30000

0% 2%

28%

70%

Analysis:
The major of the respondents were of the income level of 10000-20000 with 70%. 28% of the
respondents belong to the income level of 20000-30000. Only 2% of the respondents belong
to the income level of >10000.

42
Ques.4 Do you have any idea about Mutual Fund?
(a) Yes (b) No

40
35
35

30

25

20

15
9
10

0
Yes No

Responses

Analysis:
Only 35 of the respondents knew about Mutual Funds and the rest of 9 respondents were not
aware of Mutual funds.

43
Ques.5 From where you come to know about Mutual Fund?
(a) Advertisement (b) Peer Group (c) Banks
(d) Financial Advisors

Responses
Advertisement Peer Group Banks Financial Advisor

15%

5%
45%

35%

Analysis:
Many of the respondents came to know about Mutual Funds through advertisements with
45%. 35% of the respondents were aware of the Mutual funds by their peer groups. Few
respondents came to know about mutual funds by their Financial advisor with 15% and very
few came to know by banks.

44
Ques.6 If given a choice, where you will prefer to invest?
(a) Savings (b) FD (c) Insurance (d) Mutual Fund

(f) Shares (g) Gold (h) Real Estate

Responses
Savings FD Insurance Mutual Fund Shares Gold Real Estate

2%
5%
5%

14%
35%

23%

16%

Analysis:
If given a choice to the respondents to choose their investment preferences, 35% of the would
invest in Fixed Deposits, 23% of them would invest in Mutual Funds, 16% of them would
invest in insurance, 5% of them would invest in gold and Real estates and 2% would invest in
shares.

45
Ques.7 Which is your preference while investing?
(a) Low Risk (b) High Return (c) Liquidity (d) Trust

Response
Response

Trust 6

Liquidity 9

High Return 9

Low Risk 8

Analysis:
9 of the respondents prefer liquidity and the same of them prefer high return, 8 respondents
preference are low risk and 6 of the respondents prefer Trust.

46
Ques.8 You will prefer to invest through ICICI Direct?
(a) Yes (b) No (c) Maybe

Responses

Maybe
9%

No Yes
36% 55%

Analysis:
55% of the respondents are willing to invest in mutual funds through ICICI direct. 36% of the
respondents are unwilling to invest through ICICI direct and rest 9% are not sure of the
decision.

47
Ques.9 Which mode of investment will you prefer?
(a) Long Term (b) Short Term

16 15

14

12

10

8 7

0
Long Term Short Term

Responses

Analysis:
15 of the respondents prefer to invest for a long term and 7 of them prefer to invest for a short
term.

48
Ques.10 Objective of investment?
(a) Preservation (b) Current Income (c) Conservative Growth
(d) Aggressive Growth

Responses

Aggressive
Growth
13%

Conservative Preservation
Growth 54%
33%

Current Income
0%

Analysis:
54% of the respondents would invest with the objective of Preservation of their money. 33%
would invest with an objective of Conservative Growth and 13% of the respondents would
invest with an objective of Aggressive Growth.

49
CHAPTER –V

50
 FINDINGS

 Customers were not fully aware with mutual fund and its advantage.
 Customers even who know about mutual fund, are not investing their money into it
because of lack of knowledge about mutual fund.
 Customers prefer to invest in other alternatives.
 In future, customers would like to invest in mutual fund if ICICI Securities create
awareness and provide right knowledge about mutual fund among customers.
 Almost every customer were agree to invest with ICICI Securities services.
 There was communication gap with some customers to their respective Relationship
Manager.
 Mostly customers update themselves about investment decision by their own or take
advice with family and friends.

51
 SUGGESTIONS AND RECOMMENDATIONS

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

52
 CONCLUSION

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

53
 BIBLIOGRAPHY

 http://www.icicigroupcompanies.com
 http://www.icicisecurities.com
 http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-
centre/investorprogrm/mutual_fund.html
 http://www.mutualfundindia.com
 http://www.icicigroupcompanies.com/history.html
 Jain, Sahil, (July-Aug. 2012), Analysis of Equity Based Mutual funds in India (IOSR
 Journal of Business and Management (IOSRJBM) Volume 2, Issue 1), PP 01-04.
 Kaur, Gurjeet, Sharma R.D, Mahajan Neha, Oct-Dec 2014, Segmentation of Bank
Customer by Loyalty and Switching Intentation, Vol(39) No.4.
 CRISIL Research, Apr 2013, CRISIL Mutual Fund Year Book, PP 01-80
 Sundar, Vijayalakshmi, Mar-Apr 2014, Growth and Development of Mutual fund
industry with reference to banking Sector Funds: An Indian Perspective, Financial &
Business management (IFBM), Vol.2 No.2 PP 01-05.
 Hasan, Arshad Jafri, 2013, analysis of Mutual Fund Industry of India in the light of
New Regulation and International factors, I.J.E.M.S, Vol.4(2), PP01-03.

54
 ANNEXURE
Sample Questionnaire
Name: ................... Mob. ……………
Ques.1 What is your Qualification?
(a) Under-graduation (b) Graduation (c) Post Graduation (d) Others
Ques.2 What is your Occupation?
(a) Government (b) Private (c) Business (d) Others
Ques.3 What is your monthly family income?
(a) <=10000 (b) 10001-20000 (c) 20001-30000 (d) >30000
Ques.4 Do you have any idea about ICICI Mutual Fund?
(a) Yes (b) No
Ques.5 From where you came to know about Mutual Fund?
(a) Advertisement (b) Peer Group (c) Banks (d) Financial Advisors
Ques.6 If given a choice, where you will prefer to invest?
(a) Savings (b) FD (c) Insurance (d) Mutual Fund (e)PO (f) Shares (g) Gold (h) Real
Estate
Ques.7 Which is your preference while investing?
(a) Low Return (b) High Risk (c) Liquidity (d) Trust
Ques.8 You will prefer to invest through ICICI Direct?
(a) Yes (b) No (c) Maybe
Ques.9 Which mode of investment will you prefer?
(a) Long Term (b) Short Term
Ques.10 Objective of investment?
(a) Preservation (b) Current Income (c) Conservative Growth (d) Aggressive Growth

55