A

PROJECT REPORT ON
TRANSACTIONS OF MUTUAL FUNDS AT WALLET FOR
WEALTH: WITH SPECIAL REFERENCE TO ICICI
PRUDENTIAL EQUITY FUNDS

SUBMITTED TO
DIRECTORATE OF DISTANCE AND CONTINUING EDUCATION
UTKAL UNIVERSITY

IN PARTIAL FULFILLMENT OF
“POST GRADUATE DIPLOMA IN BANKING AND INSURANCE
MANAGEMENT”
SESSION: 2016-17

BY:
ALPHA RAJESWARI PATRA
Roll No./Regd. No:

UNDER THE GUIDANCE OF

DR. SUJIT KUMAR ACHARYA
H.O.D, Dept. Of Business Admin. DDCE, Utkal University.
&
MR. TRINATH LENKA
Director & Co- founder Wallet for Wealth

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 CERTIFICATE
This is to certify that ALPHA RAJESWARI PATRA student of DIRECTORATE OF
DISTANCE & CONTINUING EDUCATION (DDCE) Bhubaneswar, has completed her
project work at WALLET4WEALTH on the topic of ―ICICI PRUDENTIAL EQUITY
MUTUAL FUNDS and has submitted the field work report in partial fulfillment of 1 year full
time course POST GRADUATE DIPLOMA IN BANKING AND INSURANCE
MANAGEMENT for the academic year 2016-2017

She has worked under our guidance and direction. The said report is based on bonfire
information.

EXTERNAL GUIDE INTERNAL GUIDE

MR. TRINATH LENKA DR. SUJIT KU. ACHARYA

FOUNDER HOD (BUSINESS ADMN.)
WALLET4WEALTH DDCE ,BHUBANESWAR

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 DECLARATION
I hereby declare that the project titled ―ICICI PRUDENTIAL EQUITY FUNDS. It is an
original piece of research work carried out by me under the guidance and supervision of DR.
SUJIT KUMAR ACHARYA and MR. TRINATH LENKA. The information has been
collected from genuine & authentic sources. The work has been submitted in partial
fulfillment of the requirement of POST GRADUATE DIPLOMA IN BANKING AND
IN/SURANCE MANAGEMENT.

Place: Bhubaneswar Signature:

Date: (ALPHA RAJESWARI PATRA)

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 ACKNOWLEDGEMENT
“The satisfaction Euphoria that accompanies the successful completion of any work would be
incomplete unless we mention the name of the person, who made it possible, whose constant
guidance and encouragement served as a beckon of light and crowned our efforts with
success.”I consider it a privilege to express through the pages of this report, a few words of
gratitude and respect to those who guided and inspired in the completion of this project.

I am deeply indebted to MR. TRINATH LENKA (WALLET FOR WEALTH) for

giving me the opportunity to undergo my project in his esteemed organization and his timely
suggestions & Valuable guidance. I also want to give thanks to PROF. DR. SUJIT KUMAR
ACHARYA. He constantly encouraged me and showed the right path from day first till the
completion of my project.

My sincere thanks to MR. GIRIDHARI SAHOO, Dr. RASHMI RANJITA DAS (DDCE,
Bhubaneswar) and all the other faculty members for guiding me throughout the project.

Last but not the least; my cordial thanks to my Parents and friends.
However, I accept the sole responsibility for any possible errors of omission and would be
extremely grateful to the readers of this project report if they bring such mistakes to my
notice.

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 CONTENTS
CERTIFICATE I
ACKNOWLEDGEMENT II
DECLARATION III
EXECUTIVE SUMMARY IV

1. INTRODUCTION PAGE NO.

1.1 What is Investment …………………………………………………………
1.2 About Mutual Funds…………………………………………………………
1.3 Objective of the study………………………………………………………...
1.4 Limitation of the study…………………………………………………………

2. CONCEPT OF MUTUAL FUNDS

2.1 Working of Mutual Fund………………………………………………..
2.2 Types of mutual funds……………………………………………………
2.3 Advantages of mutual funds…………………………………………….
2.4 Disadvantages of mutual funds…………………………………………
3. COMPANY PROFILE
3.1 About Wallet4Wealth…………………………………………………..
3.2 Key Information About ICICI PRUDENTIAL MUTUAL FUNDS……
3.3 Services Provided
3.4 Market share……………………………………………………………
3.5 AUM Trend …………………………………………………………….
4. Data Analysis and Interpretation
1.1Research methodology…………………………
1.2Sources of data collection ………………………………………
1.3Analysis of ICICI Equity funds ……………………………………………..
1.4Debt equity comparision……………………………………………………
5. FINDING AND CONCLUSION
6. BIBLIOGRAPHY & ANNEXURE

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 CHAPTER -1
INTRODUCTION

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1.1 What is Investment?
Investment is using money to purchase assets in the hope that the asset will generate income
over time or appreciate over time. Consumption, on the other hand, is when you purchase
something with the immediate intent of personal use and with no expectation that it will
generate money or increase in value.
Investment also helps grow the economy because it creates economic activity, such as the
buying and selling of goods and services and employing people. Employed people get paid
and either save, invest, or spend their money. If they spend their money, businesses make
more profits. Businesses can then reinvest the profits in further business activities that expand
the economy.
Of course, too much of a good thing can be bad. If everyone is investing, then no one is
consuming. If no one is consuming, consumer-orientated businesses, such as restaurants and
retail establishments, will suffer. This may lead to layoffs. The key is to find the proper
balance between investment and consumption.

1.2 WHAT IS MUTUAL FUND?

A mutual fund is an investment vehicle, which pools money from investors with common
investment objectives. It then invests their money in multiple assets, in accordance with the
stated objective of the scheme. The investments are made by an ‘asset management company’
or amc.
For example, an equity fund would invest in stocks and equity-related instruments, while a
debt fund would invest in bonds, debentures, etc

It is a professionally-managed investment scheme, usually run by an asset management

company that brings together a group of people and invests their money in stocks, bonds and
other securities..
The biggest advantage of investing through a mutual fund is that it gives small investors
access to professionally-managed, diversified portfolios of equities, bonds and other
securities, which would be quite difficult to create with a small amount of capital.

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HISTORY

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India
(UTI) at the initiative of the Reserve Bank of India (RBI) and the Government of India. The
objective then was to attract small investors and introduce them to market investments. Since
then, the history of mutual funds in India can be broadly divided into six distinct phases.

PHASES
Phase I (1964-87): Growth Of UTI:
In 1963, UTI was established by an Act of Parliament. As it was the only entity offering
mutual funds in India, it had a monopoly. Operationally, UTI was set up by the Reserve Bank
of India (RBI), but was later delinked from the RBI. The first scheme, and for long one of the
largest launched by UTI, was Unit Scheme 1964.
Phase II (1987-93): Entry of Public Sector Funds:
The year 1987 marked the entry of other public sector mutual funds. With the opening up of
the economy, many public sector banks and institutions were allowed to establish mutual
funds. The State Bank of India established the first non-UTI Mutual Fund, SBI Mutual Fund
in November 1987. During this period, investors showed a marked interest in mutual funds,
allocating a larger part of their savings to investments in the funds.
Phase III (1993-96): Emergence of Private Funds:
A new era in the mutual fund industry began in 1993 with the permission granted for the
entry of private sector funds. This gave the Indian investors a broader choice of 'fund
families' and increasing competition to the existing public sector funds. Quite significantly
foreign fund management companies were also allowed to operate mutual funds, most of
them coming into India through their joint ventures with Indian promoters.
Phase IV (1996-99): Growth And SEBI Regulation:
Since 1996, the mutual fund industry scaled newer heights in terms of mobilization of funds
and number of players. Deregulation and liberalization of the Indian economy had introduced
competition and provided impetus to the growth of the industry.
During this phase, both SEBI and Association of Mutual Funds of India (AMFI) launched
Investor Awareness Programme aimed at educating the investors about investing through
MFs.
Phase V (1999-2004): Emergence of a Large and Uniform Industry:

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The year 1999 marked the beginning of a new phase in the history of the mutual fund
industry in India, a phase of significant growth in terms of both amount mobilized from
investors and assets under management. In February 2003, the UTI Act was repealed. UTI no
longer has a special legal status as a trust established by an act of Parliament. Instead it has
adopted the same structure as any other fund in India - a trust and an AMC.
Phase VI (From 2004 Onwards): Consolidation and Growth:
The industry has lately witnessed a spate of mergers and acquisitions, most recent ones being
the acquisition of schemes of Allianz Mutual Fund by Birla Sun Life, PNB Mutual Fund by
Principal, among others. At the same time, more international players continue to enter India
including Fidelity, one of the largest funds in the world.

1.3 Objectives of the study

 To identify the Market share of the ICICI Prudential Equity fund.
 To understand the growth of the ICICI Prudential Equity fund.
 To compare the income of ICICI Prudential Equity fund with others.
 To examine the stability of the ICICI Prudential Equity fund.
 Check the level of awareness about investment instruments like mutual funds among
the people.
 To know Which factors are considered by the people before they invest the money in
mutual fund .
 What are the expectations of the of the people when they invest the money.

1.4 Limitation Of Study:-

The major limitations of the study were :-

1. Use of convenient sampling because of lack of resources.

2. The sample size of the study is small to be able to give an adequate representation of the
whole population.
3. Some of the respondent’s data may not be fully incorrect.

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 CHAPTER-II

CONCEPT OF MUTUAL FUNDS

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2.1 Introduction To The Concept Of The Mutual Fund and Concept
Analysis:-
 Meaning
The concept of “Mutual Fund” ia a new feather in the cap of Indian capital market but not
to international capital markets . The formal origin of mutual funds can be traced to
Belgium where Society General de Belgique , was established in 1822 as an investment
company to finance investment in national industries with high associated risks .
The concept of mutual fund spread to U.S.A. in the beginning of 20th century
and the Post World War Two period gave an impetus to mutual funds culture in U.S.A.
when more and more people invested in mutual funds. Since then, the concept of mutual
funds has been growing all around the world.
In India , first mutual fund was started in 1964 when Unit Trust of India (UTI)
was established in the similar line of operation of the U.K. based Investment Trust
Companies .
Mutual fund is a professionally managed collective investment scheme where
a number of investors pool their money and this money is turn invested in different
instruments including equity, government bonds, commodities, debt market etc. The
investors invest the money in various types of schemes brought by the AMCs or Asset
Management Companies who in turn invest this money in various instrument to give the
best possible returns of investment to the investors.
According to SEBI, mutual funds are funds established in the form of a Trust
to raise money through the sale of unit to the public under various schemes for investing
in securities including money market instruments or gold/gold related instruments or real
estate assets.
A mutual fund is set up in the form of a trust which has a sponsor, trustees, an
asset management company (AMC), and a custodians. The sponsors set up the trust as
promoters. The trustees hold the property in trust for the benefits of the unit-holders. They
are vested with general powers of superintendence and direction over the AMC and they
monitor their performance and compliance with the SEBI regulations . The AMC
manages the funds . The custodian holds the securities of the fund in its custody .
As an investment intermediary , mutual funds offer a variety of
services/benefits to the investors convenience, low risk through diversification , expert
management and lower cost due to economies of scale.

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  Working of Mutual Fund
The working of mutual fund can be easily described by the following picture . Each Person
who wants to invest in mutual fund can be identified as unit holders . Their saving will
invested with a trust and in return they get the units along with profit amounts . The following
shows how it works .

FIG.1 Working of Mutual Funds Source www.mutualfundsindia.com

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2.2 TYPES OF MUTUAL FUNDS

There are many different types of mutual funds categorised based on structure, asset class and
investment objectives. Choosing the right type of fund for your investment needs will depend
on your investment goal.

Types of Mutual Funds based on structure

Open-Ended Funds: These are funds in which units are open for purchase or redemption
through the year. All purchases/redemption of these fund units are done at prevailing NAVs.
Basically these funds will allow investors to keep invest as long as they want. There are no
limits on how much can be invested in the fund.
Close-Ended Funds: These are funds in which units can be purchased only during the initial
offer period. Units can be redeemed at a specified maturity date. To provide for liquidity,
these schemes are often listed for trade on a stock exchange.
Interval Funds: These are funds that have the features of open-ended and close-ended funds
in that they are opened for repurchase of shares at different intervals during the fund tenure.
The fund management company offers to repurchase units from existing unit holders during
these intervals. If unit holders wish to they can offload shares in favour of the fund.

Types of Mutual Funds based on investment objective

Growth funds: Under these schemes, money is invested primarily in equity stocks with the
purpose of providing capital appreciation. They are considered to be risky funds ideal for
investors with a long-term investment timeline. Since they are risky funds they are also ideal
for those who are looking for higher returns on their investments.

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Income funds: Under these schemes, money is invested primarily in fixed-income
instruments e.g. bonds, debentures etc. with the purpose of providing capital protection and
regular income to investors.
Liquid funds: Under these schemes, money is invested primarily in short-term or very short-
term instruments e.g. T-Bills, CPs etc. with the purpose of providing liquidity. They are
considered to be low on risk with moderate returns and are ideal for investors with short-term
investment timelines.
Tax-Saving Funds (ELSS): These are funds that invest primarily in equity shares.
Investments made in these funds qualify for deductions under the Income Tax Act. They are
considered high on risk but also offer high returns if the fund performs well.
Capital Protection Funds: These are funds where funds are split between investment in fixed
income instruments and equity markets. This is done to ensure protection of the principal that
has been invested.
Fixed Maturity Funds: Fixed maturity funds are those in which the assets are invested in
debt and money market instruments where the maturity date is either the same as that of the
fund or earlier than it.
Pension Funds: Pension funds are mutual funds that are invested in with a really long term
goal in mind. They are primarily meant to provide regular returns around the time that the
investor is ready to retire.

Types of Mutual Funds based on specialty

Sector Funds: These are funds that invest in a particular sector of the market e.g.
Infrastructure funds invest only in those instruments or companies that relate to the
infrastructure sector. Returns are tied to the performance of the chosen sector. The risk
involved in these schemes depends on the nature of the sector.
Index Funds: These are funds that invest in instruments that represent a particular index on
an exchange so as to mirror the movement and returns of the index e.g. buying shares
representative of the BSE Sensex.
Fund of funds: These are funds that invest in other mutual funds and returns depend on the
performance of the target fund. These funds can also be referred to as multi manager funds.
These investments can be considered relatively safe because the funds that investors invest in
actually hold other funds under them thereby adjusting for risk from any one fund.

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Emerging market funds: These are funds where investments are made in developing
countries that show good prospects for the future. They do come with higher risks as a result
of the dynamic political and economic situations prevailing in the country.
International funds: These are also known as foreign funds and offer investments in
companies located in other parts of the world. These companies could also be located in
emerging economies. The only companies that won’t be invested in will be those located in
the investor’s own country.
Global funds: These are funds where the investment made by the fund can be in a company
in any part of the world. They are different from international/foreign funds because in global
funds, investments can be made even the investor's own country.
Real estate funds: These are the funds that invest in companies that operate in the real estate
sectors. These funds can invest in realtors, builders, property management companies and
even in companies providing loans. The investment in the real estate can be made at any
stage, including projects that are in the planning phase, partially completed and are actually
completed.
Commodity focused stock funds: These funds don’t invest directly in the commodities. They
invest in companies that are working in the commodities market, such as mining companies
or producers of commodities. These funds can, at times, perform the same way the
commodity is as a result of their association with their production.
Market neutral funds: The reason that these funds are called market neutral is that they don’t
invest in the markets directly. They invest in treasury bills, ETFs and securities and try to
target a fixed and steady growth.
Inverse/leveraged funds: These are funds that operate unlike traditional mutual funds. The
earnings from these funds happen when the markets fall and when markets do well these
funds tend to go into loss. These are generally meant only for those who are willing to incur
massive losses but at the same time can provide huge returns as well, as a result of the higher
risk they carry.
Asset allocation funds: The asset allocation fund comes in two variants, the target date fund
and the target allocation funds. In these funds, the portfolio managers can adjust the allocated
assets to achieve results. These funds split the invested amounts and invest it in various
instruments like bonds and equity.
Gift Funds: Gift funds are mutual funds where the funds are invested in government
securities for a long term. Since they are invested in government securities, they are virtually
risk free and can be the ideal investment to those who don’t want to take risks.

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Exchange traded funds: These are funds that are a mix of both open and close ended mutual
funds and are traded on the stock markets. These funds are not actively managed, they are
managed passively and can offer a lot of liquidity. As a result of their being managed
passively, they tend to have lower service charges (entry/exit load) associated with them.

Types of Mutual Funds based on risk

Low risk: These are the mutual funds where the investments made are by those who do not
want to take a risk with their money. One example of a low risk fund would be gift funds
where investments are made in government securities.
Medium risk: These are the investments that come with a medium amount of risk to the
investor. They are ideal for those who are willing to take some risk with the investment and
tends to offer higher returns. These funds can be used as an investment to build wealth over a
longer period of time.
High risk: These are those mutual funds that are ideal for those who are willing to take
higher risks with their money and are looking to build their wealth. One example of high risk
funds would be inverse mutual funds. Even though the risks are high with these funds, they
also offer higher returns.

2.3 ADVANTAGES OF MUTUAL FUNDS :

Small investors usually do not have the necessary expertise and time to undertake any study
that can facilitate informed decisions. While this is the predominant reason for the popularity
of mutual funds, there are many other benefits that make mutual funds appealing.
 Diversification Benefits:
Diversified investment improves the risk return profile of the portfolio. Optimal
diversification has limitations due to low liquidity among small investors. The large corpus of
a mutual fund as compared to individual investments makes optimal diversification possible.
Due to the pooling of capital, individual investors can derive benefits of diversification.

 Low Transaction Costs:

Mutual fund transactions are generally very large. These large volumes attract lower
brokerage commissions and other costs as compared to smaller volumes of the
transactions that individual investors enter into.
 Availability of Various Schemes:

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 There are four basic types of mutual funds: equity, bond, hybrid and money market.
Equity funds concentrate their investments in stocks. Similarly bond funds primarily
invest in bonds and other securities. Equity, bond and hybrid funds are called long-
term funds.
Professional Management:

 Mutual funds are managed by fund managers generally with knowledge and
experience whose time is solely devoted to tracking and updating the portfolio. Thus
investment in a mutual fund not only saves time and effort for the investor but is also
likely to produce better results.

 Liquidity:
Liquidating a portfolio is not always easy, investing in mutual funds can solve these
problems. A fund house generally stands ready to buy and sell its units on a regular
basis. Thus it is easier to liquidate holdings in a Mutual Fund as compared to direct
investment in securities.
 Returns:
In India dividend received by investors is tax-free. This enhances the yield on mutual
funds marginally as compared to income from other investment options. Also in case
of long-term capital gains, the investor benefits from indexation and lower capital
gain tax.
 Flexibility:
Features of a MF scheme such as regular investment plan, regular withdrawal plans
and dividend reinvestment plan allows investors to systematically invest or withdraw
funds according to the needs and convenience.
 Well Regulated:
All mutual funds are registered with SEBI and they function within the provisions of
strict regulations designed to protect the interest of investors. The SEBI regularly
monitors the operations of an AMC.

2.4 DISADVANTAGES OF MUTUAL FUNDS:

There are certainly some benefits to mutual fund investing, but you should also be aware of
the drawbacks associated with mutual funds.

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  No Insurance: Mutual funds, although regulated by the government, are not insured
against losses.
 Dilution: Although diversification reduces the amount of risk involved in investing in
mutual funds, it can also be a disadvantage due to dilution.
 Fees and Expenses: Most mutual funds charge management and operating fees that
pay for the fund's management expenses (usually around 1.0% to 1.5% per year for
actively managed funds). Some of these expenses are charged on an ongoing basis,
unlike stock investments, for which a commission is paid only when you buy and sell.
 Poor Performance: Returns on a mutual fund are by no means guaranteed. In fact, on
average, around 75% of all mutual funds fail to beat the major market indexes.
 Loss of Control: The managers of mutual funds make all of the decisions about
which securities to buy and sell and when to do so. You also should remember that
you are trusting someone else with your money when you invest in a mutual fund.
 Trading Limitations: Although mutual funds are highly liquid in general, most
mutual funds (called open-ended funds) cannot be bought or sold in the middle of the
trading day.
 Size: Some mutual funds are too big to find enough good investments. This is
especially true of funds that focus on small companies, given that there are strict rules
about how much of a single company a fund may own.
 Inefficiency of Cash Reserves: Mutual funds usually maintain large cash reserves as
protection against a large number of simultaneous withdrawals. Although this
provides investors with liquidity, it means that some of the fund's money is invested
in cash instead of assets, which tends to lower the investor's potential return.
 Too Many Choices: The advantages and disadvantages listed above apply to mutual
funds in general. However, there are over 10,000 mutual funds in operation, and these
funds vary greatly according to investment objective, size, strategy, and style. Mutual
funds are available for virtually every investment strategy (e.g. value, growth), every
sector (e.g. biotech, internet), and every country or region of the world. So even the
process of selecting a fund can be tedious.

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 CHAPTER-III
COMPANY PROFILE

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3.1 About Wallet4Wealth
Wallet4wealth is a special Private Wealth Management & Distributor Firm set up by
experienced persons from the Industry, to provide a professional platform of Private Wealth
Management services.
Wallet4wealth is a comprehensive source of Investment Knowledge, Financial Planning,
Mutual Funds India Research, Authorised Online trading services and Investing in India.
If you are looking to avail the services of credible Mutual Fund Advisors, Life Insurance
Agents, General Insurance Agents, Income Tax Return, Certified Financial Planners, Income
Tax Consultants, Share & Stock Brokers, Income Tax e-filing, Investment Financial
Planning, Fixed Deposit and Tax Return Preparer Scheme (TRPS) or any other service in
personal finance domain in your neighbourhood, then you have come to the right place.

The reason for creating Wallet4wealth is to bridge the gap between all the stakeholders,
Investors - Advisors. While the investor can search the most suitable financial advisor for
fulfilment of his financial goals, the advisor can establish him as an aid to that with the help
of innovative solutions offered by the manufacturer. As a bridge, our endeavour would be to
collaborate, converge and create.

We believe financial planning should be affordable, accessible, and even delightful. Whether
you want to budget better, save for big trips, maximize your investments, or something in
between, we’re here to help you make progress on your money.

TAG Line says……… “Delivering Prosperity”

For Client’s interests: What is good for our clients is good for us
 Delivering prosperity to our valued clients by advising and guiding according to their
financial goals and also offering the better out of best products which is suitable for
them by taking robust risk taking measures.
 We strive to have the most diverse set of choices for clients in terms of investment
options; each client has different needs and each optimal asset allocation mix will be
different. Client interest is supreme for us.

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For Aligned Partners/Stake Holders/Employees….

 Delivering prosperity to our partners, stake holders and employees. Gifting ownership
of the business with absolutely stress free environment. People will be looked as
entrepreneur as always. Transferring out people from employees to entrepreneurship.
 We have cordial relations with all product partners and they respect us for our keeping
our client’s interests first. We also value the contribution of our partners in
technology, marketing, and organization building and strive to be fair in our dealings
with them – they, too, are completely soaked in our Clients-first culture.

Compliance and Ethics

 Ethics and compliance at Wallet4wealth are non-negotiable areas. We uphold them to
the highest degree in all our interactions.

Integrity
 To be true and honest with everyone and have the ability to fearlessly voice opinions
without biases.

Orientation for excellence

 To have benchmarks that compare with the best in class globally and strive towards a
work output that significantly exceeds client expectations.

Professionalism
 To have the highest standards of conduct in dealing with all stakeholders and have
systems, policies and behavior which encourage organizational effectiveness.

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KEY PERSONNEL
Mr. Trinath Lenka (FOUNDER OF WALLET4WEALTH)
(MBA, PGDFM)
 Wallet4wealth has been founded by Mr. Trinath Lenka who is a Financial Advisor
cum Planner.
 He has over 17 years of experience in the Wealth management industry. He
previously worked with Karvy Stock Broking Ltd and Edelweiss Broking Ltd.
 He started his career working with Karvy Stock Broking Ltd. in the year 2000. Then
he started working at Edelweiss Broking Ltd. In his last role, he was the Deputy Vice
President and Head of Edelweiss Broking Ltd for the Region. And coordinating for So
many projects of Edelweiss at National Level.
 He has a strong track record of driving superior financial performance. He has diverse
experience in both the public and private sectors. He has spent decades conducting
primary research and managing billions of Rupees of assets, and apply that expertise
to help guide investment strategy. He is well connected and respected in the Financial
Services industry and brings deep domain knowledge and leadership skills.
 He is passionate about taking financial advice to the masses and contributes his
thoughts regularly through articles and blogs. He appears frequently on television for
matters related to personal finance and Wealth management.
 He used conduct so many financial literacy program at various PSUs, Government,
Private Organisations. Few People knows and called him as Investment Guru in the
field.

Mrs. Prachi Lenka (Director)

Holds the position as Promoter and worked for the Organisation.

Mr. Santosh Kumar Sahoo(Director)

Mr.Santosh Kumar Sahoo is Having more than 7 years of experience in the field of Stock
Broking & Commodity Broking with vast knowledge on International markets. He has hold
senior positions in corporate field.

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3.2 ICICI Prudential Mutual Fund
Key Information

Mutual Fund ICICI Prudential Mutual Fund

Setup Date Oct-13-1993

Incorporation Date Jun-22-1993

Sponsor Prudential Plc and ICICI Bank Ltd.

Trustee ICICI Prudential Trust Ltd.

Chairman Ms. Chanda Kochhar

CEO / MD Mr. Nimesh Shah

CIO Mr. S Naren

Compliance Officer Ms. Supriya Sapre

Investor Service Officer Mr. Yatin Suvarna

Assets Managed Rs. 242961.31 crore (Mar-31,2017)

Corporate Profile
ICICI Prudential Asset Management Company Ltd. is a leading asset management company
(AMC) in the country focused on bridging the gap between savings & investments and
creating long term wealth for investors through a range of simple and relevant investment
solutions.

The AMC is a joint venture between ICICI Bank, a well-known and trusted name in financial

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services in India and Prudential Plc, one of UK’s largest players in the financial services
sectors. Throughout these years of the joint venture, the company has forged a position of
pre-eminence in the Indian Mutual Fund industry.

The AMC manages significant Assets under Management (AUM) in the mutual fund
segment. The AMC also caters to Portfolio Management Services for investors, spread across
the country, along with International Advisory Mandates for clients across international
markets in asset classes like Debt, Equity and Real Estate.

Sponsors

ICICI Bank is India's largest private sector bank with total assets of Rs. 7,206.95 billion (US$
109 billion) at March 31, 2016 and profit after tax Rs. 97.26 billion (US$ 1,468 million) for
the year ended March 31, 2016. ICICI Bank currently has a network of 4,608 Branches and
14,052 ATM's across India.

Prudential plc is an international financial services group with significant operations in Asia,
US and the UK. The company serves more than 24 million insurance customers and has £599
billion of assets under management (as at 31 December 2016).
Prudential Corporation Asia (PCA)
Prudential is a leading life insurer that spans 13 markets in Asia, covering Cambodia, China,
Hong Kong, India, Indonesia, Korea, Laos, Malaysia, the Philippines, Singapore, Taiwan,
Thailand and Vietnam. Prudential has a robust multi-channel distribution platform providing
a comprehensive range of savings, investment and protection products.

Eastspring Investments manages investments across Asia on behalf of a wide range of retail
and institutional investors, with about half of its assets sourced from life and pension
products sold by Prudential plc. It is one of the region’s largest asset managers with a
presence in 10 major Asian markets as well as distribution offices in the US and Europe. It
has £104.9 billion in assets under management (as at 30 June 2016), managing funds across a
range of asset classes including equities and fixed income.

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Jackson National Life Insurance Company
Jackson is one of the largest life insurance companies in the US, providing retirement savings
and income solutions with more than 2.9 million policies and contracts in force. Jackson is
also one of the top three providers of variable annuities in the US. Founded 50 years ago,
Jackson has a long and successful record of providing advisers with the products, tools and
support to design effective retirement solutions for their clients.
Prudential UK & Europe (PUE)
Prudential UK is a leading life and pensions provider to approximately 6 million customers in
the United Kingdom. Their expertise in areas such as longevity, risk management and multi-
asset investment, together with our financial strength and highly respected brand, means that
the business is strongly positioned to continue pursuing a value-driven strategy built around
our core strengths in with-profits and annuities.
M&G
M&G is Prudential's UK and European fund management business with total assets under
management in excess of £255.4 bn (as at 30 June 2016). M&G has been investing money for
individual and institutional clients for over 80 years. Today it is one of Europe's largest active
investment managers as well as being a powerhouse in fixed income.

3.3 Services Provided

ICICI Prudential Asset Management Company Ltd. offers an array of investment options
ranging from Diversified to Sector specific Equity Schemes, Balanced and Fixed Income
Funds to Portfolio Management Services and Advisory Services.

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 MUTUAL FUND

ADVISIORY ICICI PORTFOLIO

SERVICE PRUDENTIAL MANAGEMENT

REAL ESTATE

 Mutual Fund
ICICI Prudential Mutual Fund (the Fund) offers a wide range of retail and corporate
investment solutions across different asset classes like Equity, Fixed Income and Gold.

The Fund House has continuously aimed to provide investors with financial solutions to aid
them in achieving their lifecycle objectives. It has constantly been on the forefront of
innovation and has introduced products aligned to meet customer needs leading to a well-
diversified portfolio of around 57 mutual fund products. The success of the endeavors is
evident in the mutual fund investor base that has witnessed significant growth from 210 to
over 2 Million currently.

ICICI Prudential Mutual Fund gained from managing funds as per its investment objectives
and was able to deliver superior risk adjusted returns. The consistent long term performance
was achieved on the strength of fundamentals, process driven investment approach with
enough flexibility for the fund managers to manage their funds in their unique style and
insight.

The fund house over the last 18 years has garnered trust of its investors and has emerged as
the leading and preferred investment solution provider in India. The fund house has always
aimed to fulfil its fiduciary responsibility of managing investor's wealth with prudence and
due diligence.

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  ICICI Prudential PMS
ICICI Prudential Portfolio Management Services(PMS) enjoys a rich parentage of two large
organisations ICICI Bank Ltd which is India's largest private sector bank in addition to being
one of the most trusted brands in financial services and Prudential Plc UK, an international
financial services company, with significant operations in Asia, US and UK.

 Real Estate Investment

ICICI Prudential AMC is one of the pioneers in identifying Indian Real Estate Investments as
an essential asset class. We started our Real Estate Investment Series Portfolio under ICICI
Prudential AMC-PMS in the year 2007 which optimized the opportunities available. Over the
past four years we have emerged as an efficient and successful real estate team and take pride
in being the preferred partner for leading real estate developers in India.
 Advisory Services
ICICI Prudential Asset Management runs a successful international business franchise
through its offshore advisory division, that advises India only funds and segregated mandates
for clients domiciled in jurisdictions spanning Europe, Japan, Middle East, Taiwan &
Singapore.
We believe our strong parentage and on the ground presence enables us to offer the following
benefits to offshore investors:
 Investment Insights and Information.
 Better and easier access to company managements due to local presence.
 Deep understanding of reputation, vision and execution capabilities of companies.
 An innate understanding of governance structures of corporate entities.
3.4AUM Market Share of ICICI Prudential Mutual Fund
TABLE: 1

Description Values ( Cr.)

Total AUM 18,48,506.97

Quarterly Average AUM of ICICI Prudential Mutual Fund 2,43,143.91

(As of 31 Mar 2017)

Market Share in % 13.15

GRAPH-1 AUM Market Share of ICICI Prudential Mutual Fund

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 MARKET SHARE

13.15
OTHERS AMC

ICICI PRUDENTIAL MUTUAL

FUND
86.85

AUM TRENDS (IN CRORES)

270000
260000
250000
240000
230000 AUM TRENDS (IN CRORES)
220000
210000
200000
NOV 16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17

GRAPH-2 AUM showing the growth from Nov. 16 to Apr-17.

Asset Allocation (%)(Apr, 17)

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 ICICI Prudential’s Funds
From identifying the right fund that suits your investment objective, to comparing
performances of different funds, this section will tell you all you need to know about ICICI
Prudential Mutual Funds, before investing.

Equity 66.42

Others -33.97

Debt 30.68

Mutual Funds N.A

Money Market 0.00

Cash / Call 36.86

EQUITY FUNDS

BALANCED FUNDS

DEBT FUNDS

FUNDS OF FUNDS

EXCHANGE TRADED FUND

29 | P a g e
Equity schemes endeavor to provide potential for high growth and returns with a moderate to
high risk by investing in shares. Such schemes are either actively or passively (replicate
indices) managed, and are best suited for investors with a long term investment horizon.

Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes. This
category is characterized by a portfolio that is made up of a mix of equity stocks and bonds
and will suit investors looking for debt plus returns with higher levels of risk than fixed
income schemes.

Debt Funds primarily invests in bonds and other debt instruments, and will suit investors who
want to optimize current income assuming low to moderate levels of risk.

A Fund of Funds is a mutual fund scheme that invests in other mutual funds, and is designed
to suit the varying needs of different investor categories based on their risk profiles, return
expectations and investment goals. It provides investors an opportunity to take advantage of
the benefits of diversification by investing in a variety of fund categories.

Exchange Traded Funds (ETFs) are instruments that track an index, a commodity or a basket
of assets as closely as possible, but trade like shares on an exchange. They are backed by
physical holdings of the commodity, and invest in stocks of companies, precious metals or
currencies. ETFs give you the flexibility to buy and sell units throughout the day, on an
exchange.

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3.5 Advantages of equity mutual fund schemes
 Professional management
 Portfolio Diversification
 Liquidity
 Systematic/ Regular investments
 Tax benefits
Other Product
 ICICI Prudential Dynamic Plan
 ICICI Prudential Focused Blue chip Equity Fund
 ICICI Prudential Value Discovery Fund
 ICICI Prudential Infrastructure Fund
 ICICI Prudential Child Care Plan(Gift)
 ICICI Prudential Long Term Equity Fund(Tax Saving)
 ICICI Prudential Equity Income Fund
 ICICI Prudential Multicap Fund
 ICICI Prudential Technology Fund
 ICICI Prudential Blended Plan A
 ICICI Prudential US Bluechip Equity Fund
 ICICI Prudential Top 100 Fund
 ICICI Prudential MidCap Fund
 ICICI Prudential Export and Other Services Fund
 ICICI Prudential Equity Arbitrage Fund
 ICICI Prudential Dividend Yield Equity Fund
 ICICI Prudential Balanced Advantage Fund
 ICICI Prudential Indo Asia Fund
 ICICI Prudential FMCG Fund
 ICICI Prudential Banking and Financial Services Fund
 ICICI Prudential Select Large Cap Fund

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  ICICI Prudential Nifty Index Fund
 ICICI Prudential Nifty Next 50 Index Fund

A.ICICI Prudential Dynamic Plan

ICICI Prudential Dynamic Plan is an Open-ended Diversified Equity Fund that aims to make
the most of market changes. Given the dynamic nature of the markets, the fund has the ability
to attack by taking aggressive asset calls in equity and equity related securities. On the flip
side it may also adopt a defensive strategy by investing in debt, money market instruments
and derivatives as and when markets get overvalued.
Investment Philosophy
This fund adopts a "Bottom-up" fundamental analysis strategy across market capitalizations
on a diversified basis, to identify and pick its investments. The fund manager has the
discretion to take aggressive or defensive asset calls, based on market conditions.
Key Benefits
 It could be an ideal product in a volatile environment as it has the agility, aimed at
capturing upside opportunities in the market across market capitalizations.
 On the flip side, it has the ability to switch to cash; thus seeking to limit the
downside, in case stock markets get into an overvalued position.

B. ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund is an Open-ended Diversified Equity Fund, which
aims to invest stocks available at a discount to their intrinsic value, through a process of
`Discovery?. The process involves identifying companies that are well managed,
fundamentally strong, and are available at a price, which can be termed as a bargain.
Investment Philosophy
This fund adopts a "Bottom-up" strategy, to identify and pick its investments based on an
evaluation of several parameters such as Price / Earning, Price / Book Value and Dividend
Yield. The fund manager works towards building a portfolio that is well diversified across
sectors and constructed based on in-depth research.
Key Benefits
 It follows a value strategy of bargain hunting for intrinsically good stocks
 As the potential value of the stocks in which the fund invests has not yet been
unlocked, the probability of growth is much higher.
C. ICICI Prudential Focused Bluechip Equity Fund

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ICICI Prudential Focused Blue chip Equity Fund is an Open-ended equity scheme that aims
for growth from a focused and optimally diversified portfolio. It invests in equity and equity
related securities of companies belonging to the large cap domain.
Investment Philosophy
This fund adopts a bottom-up approach while selecting stocks and the fund manager has the
flexibility to choose between stocks across all themes and sectors. This strategy has the
potential to generate returns from being overweight on certain high conviction stock picks.
Key Benefits
 The fund seeks to create reasonable diversification across sectors
 The fund has a long term focus with "buy and hold" approach
 The large cap companies have proven track record, quality management and good
growth potential.

D. ICICI Prudential Infrastructure Fund

All over the world, countries are continually looking towards developing and expanding their
infrastructure, and India is no exception. A strong infrastructure is the foundation stone of the
economy and the force that drives our nation forward, by paving the road for advancements
in myriad ancillary industries, and contributing to our overall growth.
ICICI Prudential Infrastructure Fund is an open-ended equity fund, focused on capturing the
opportunity presented by the long-term growth and development potential of the Indian
Infrastructure Sector. The Fund focuses its investments on the core infrastructure sector and
allied sectors that directly feed off its growth.
Investment Philosophy
This fund seeks to provide capital appreciation and income distribution to by investing
predominantly in equity / equity related securities of companies belonging to the
infrastructure sector. It aims to optimize the risk-adjusted return by a mix of "Top-down"
Marco research to identify key sectors and "Bottom-up" Micro research, to identify and pick
stocks that exhibit long term growth potential.
Key Benefits
 The potential for long term growth makes this fund an attractive investment
opportunity.
 There is lower concentration risk as it is a thematic fund.

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E. ICICI Prudential Equity Income Fund
An open-ended equity fund that seeks to generate regular income through investments in
fixed income securities and using arbitrage and other derivative Strategies. It also intends to
generate long-term capital appreciation by investing a portion of the assets in equity and
equity related instruments.
Investment Philosophy
The scheme seeks to maintain gross equity exposure in the range of 65% to 75% using an in
house asset allocation model (Price to Book Value model or P/BV model). The scheme seeks
to benefit from arbitrage opportunities available in the market. The net equity exposure will
be in the range of 20% to 40%.The scheme will actively manage duration. The maturity
profile will be managed based on the market conditions, interest rate outlook and stability of
ratings.
Key Benefits
 A portfolio with no market cap bias.
 Seeks to benefit from arbitrage opportunities available in the market.
 Manages the equity levels in the range of 65% to 75% on the basis of asset allocation
model i.e. P/BV model.

F. ICICI Prudential Long Term Equity Fund(Tax Saving)

There are various opportunities that individuals can avail, to save tax u/s 80C of Income tax
Act like Public Provident Fund, National Savings Certificate.

When compared to these traditional tax savings instruments$, an Equity Linked Savings
Scheme is more opportunistic for individuals, as it provides a shorter lock-in period of three
years and potential for higher returns, which are exempt from taxes.

ICICI Prudential Tax Plan, an open-ended equity linked savings scheme, is an opportunity
aimed at harnessing the benefits of investing in equity and also providing tax benefits.
Investment Philosophy
This fund has a lock-in period of 3 years, which gives the fund manager the flexibility to
make strategic, long-term investments in a diversified portfolio. It comprises of a mix of large
and medium sized stock, carefully chosen after intensive fundamental analysis and research,
having potential of long-term capital appreciation and growth.

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Key Benefits
 Provide tax deduction up to the limits specified u/s 80C of the Income Tax Act, 1961
is eligible for deduction.
 Shorter lock-in period of 3 years as compared to other traditional tax saving
instruments$
 It offers a potential for a higher return and potential to earn tax-free dividend
 Also, there is no tax on long term capital gains on redemptions done after lock in
period

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 CHAPTER-IV

DATA ANALYSIS AND

INTERPRETATION

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4.1 Research Methodology :-
Investment in mutual fund is not a one-time activity. It is a continuous activity. The same
investor, if satisfied, will come to the fund again and again. When the investor sends his
application, it is not only an application, but it also contains vital information.
Most of this information if tabulated and analyzed would provide important insights into
investor needs, preferences and behaviour and enables us to target customers need more
accurately, to achieve better penetration, deeper loyalty and reduced costs. It is in this context
that direct marketing will assume increased importance. Knowing the customer thoroughly is
of utmost importance.
Unlike the consumer goods industry, it is not possible for mutual fund industry to test market
and have pilot projects before launch. At the same time, focusing and concentrating on a
particular geographic area where the fund has a strong presence and proven marketing
network, can help reduce network, can help reduce issue expenses and ultimately translate
into higher returns for the investor. Very little research on investor preference is available,
but the industry can collectively have a data bank, and share the information for appropriate
use.
This study on Mutual funds in India has been based on primary as well as secondary data
sources.
 Primary data: has been collected from the ICICI PRUDENTIAL MUTUAL FUND
BHUBANESWAR by personal visit .
The primary data is collected by the getting the questionnaire filled from the common
investor above the age of 18 and below the age of 50 years.
For this research, I have made use of a questionnaire for ascertaining the investment pattern
of a common investor.
The questionnaire consisted of 14 questions in total, each question having various multiple
choices. Depending upon the choice selected by the respondent, each respondent gets a total
score which represents his degree of favourability towards the kind of investment he makes
and his knowledge about the investments.
The main aim of conducting the survey using a questionnaire was to understand the
perception of small investors, who are the most exploited in Indian capital Market, analyze
the type of funds available for the investor and understand the investment pattern of a
common investor, importance of marketing Strategies in mutual funds.

37 | P a g e
This was done by ascertaining the average response of all the samples for the total 14
questions asked in the questionnaire. The results for the 14 questions asked were further
graphically represented, showing the favorability towards different parameters.
 Secondary data :
The secondary sources of data are :-
• Books
• Internet Websites
• Magazine Articles

Sample Size:
50 samples of different age group having different designation.
Use of Tools:
 Bar charts
 Pie chart
 Tabulation

4.2 ICICI PRUDENTIAL EQUITY FUND V/S OTHER INVESTMENT AVENUES?

Fixed Small saving Company Debt Icici

Instrument return sceme fd mutual frudential
instrument funds equity
fund

Return expectation Fixed but Fixed Fixed and Close to Better than
over next 3 years relatively depends portfolio debt funds
low on credit YTM and FRI
risk

Tax(maturity and Taxable Tax free Taxable Indexation Tax free

income) benefit after 1 year

Lock in period Fix Fix Fix Flexible Flexible

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Liquidity With penalty No No /low Yes (T+1) Yes (T+1)

Cash flow Quarterly Monthly Half Flexible Monthly

interest /quarterly/yearly yearly/ frequency /quarterly
payout annualy Starting dividend
daily and AWP
Risk Low Low Credit risk Depends on Relatively
fund moderate
duration

Returns (NAV as on 26 May, 2017)

Period Returns (%) Rank #

1 mth 0.9 118

3 mth 2.2 215

6 mth 5.1 226

1 year 14.7 203

2 year 9.1 164

3 year - -

5 year - -

ICICI Prudential Top 100 Fund: 20 times returns in 18 years from this large cap
mutual fund

Fund Overview
The fund was launched in July 2009 and has an AUM base of र 1,290 crores. The expense
ratio of this large cap fund is 2.3%. Sankaran Naren and Mittui Kalawadia are the fund
managers of ICICI Prudential Top 100 fund. ICICI Prudential is one of the largest asset
management companies, with a stellar track record of strong performance across several
mutual fund product categories. Though ICICI Prudential Top 100 fund has given negative
returns in the last one year, it has outperformed the large cap funds category across different
time-scales. The table below shows the trailing returns of the fund and the large cap funds
category, over the last 1, 3, 5 and 10 year periods (NAVs on 26.02.2016).

39 | P a g e
The chart below shows the NAV movement of the fund since inception.

Source: Advisorkhoj Research

The chart below shows the 1 year rolling returns of ICICI Prudential Top 100 fund
since inception. Rolling returns are the annualized returns of the scheme taken for a
specified period on every day and taken till the last day of the duration.

We can see that the rolling returns of the fund have been volatile and at times have dipped
into the negative territory. But we can also see that from time to time the fund has given 50 to
100% annual returns. These periods of spectacular returns have enabled the fund to offset
volatility and create wealth for investors. Investors can in fact, take advantage of the volatility
by investing through the monthly SIP mode. Let us see how much corpus an investor could

40 | P a g e
have accumulated by investing र 3,000 monthly in ICICI Prudential Top 100 Fund
through systematic investment plan (SIP) over the last 15 years.

By investing र 3,000 monthly in ICICI Prudential Top 100 Fund through SIP over the last 15
years, an investor could have accumulated a corpus of almost र 21 lacs with a cumulative
investment of little over र 5.4 lacs. This means that the investor would have made a profit of
over र 15 lacs with a cumulative investment of र 5.4 lacs. This shows the power of investing
through the SIP mode.
Portfolio Construction
The investment style of the fund managers is a mix of value and growth styles. The fund has
a large cap bias. Large cap stocks account for 75% of the portfolio value. Over the past year
or so, large cap stocks have underperformed small and midcap stocks. This is a strange
phenomenon because in bear markets we expect large cap stocks to outperform small and
midcap stocks. The underperformance for large cap stocks has been attributed to activity of
Foreign Institutional Investors (FIIs). FIIs invest primarily in large cap stocks. Since FIIs
have been pulling out money from India over the past few months, prices of large cap stocks
have been affected more adversely than small and midcap stocks. In fact, the average
valuations (P/E ratios) of large cap stocks are now lower than the average valuation of
midcap stocks. The P/E ratio of Nifty Midcap Index as on 26.02.2016 is 21.5, whereas the
P/E ratio of Nifty is 19. This is an abnormal situation and many fund managers believe that
large cap stocks will outperform midcap stocks, when the market recovers.
In terms of sector allocations of ICICI Prudential Top 100 fund, cyclical sectors comprise the
majority of portfolio holdings. Banks, power, automobiles and auto ancillaries, oil and gas,
metals etc, comprise the majority of the fund’s sector allocation. Around 24% of the fund’s

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portfolio holdings are in defensive sectors like technology, FMCG and pharmaceuticals.
Cyclical sectors usually suffer the most in terms of share prices in bear markets, because
revenues and earnings of cyclical sectors depend on the domestic consumption, which has
been weak for some time now. However, when the economy recovers cyclical sectors
outperform defensive sectors. Market experts and fund managers believe that many large cap
stocks are now trading at very attractive valuations and can give excellent returns to investors
over a sufficiently long investment horizon. Let us understand this a bit more by comparing
current P/E ratios of key sector indices with their P/E ratios five years back.

Source: National Stock Exchange

The gray bars show the P/E ratios of key sector indices on 26.02.11, while the orange bar
shows the P/E ratios of these indices on 26.02.16. You can see that the P/E ratios of many
sectors, e.g. Banks, Energy, Infrastructure and IT have actually shrunk in the last 5 years.
These sectors comprise a substantial portion of ICICI Prudential Top 100 portfolio. Now
compare the P/E compression of Banks, Energy, Infrastructure and IT with the P/E expansion
of Pharmaceuticals and FMCG. Within each sector the extent of P/E compression is different
for different stocks. This clearly shows that, there is potential of substantial valuation upside
in certain sectors and for specific stocks within the sectors. Therefore fund managers believe
that investors can make excellent returns over a long time horizon by investing at these
levels.
From a company concentration standpoint the ICICI Prudential Top 100 fund is fairly well
diversified. The top 5 stock holdings Power Grid, HDFC Bank, Tata Motors, ICICI Bank and
Great Eastern Shipping account 36% of the fund portfolio. The top 10 stock holdings account
42 | P a g e
for around 50% of the fund portfolio. The table below shows some key price statistics of top
stock holdings of ICICI Prudential Top 100 fund.

*Tata Motors has reported loss, therefore P/E is Not Applicable

Source: Moneycontrol.com

While the extent of price destruction has varied from stock to stock, you can see from the
table above all these stocks are trading 15 to 50% below their 52 week highs. We had
discussed earlier that the P/E ratio of certain sectors have compressed over the last 5 years or
so. Within these sectors, in the table above, you can see that P/E ratio of many stocks in the
table above is below the industry P/E ratio. These can be pockets of deep value when the
market recovers. After all these companies are leading names in their respective sectors with
strong managements. It is true that some sectors e.g. banks are facing serious challenges. We
do not think that we know the full extent of the Non Performing Assets problem in the banks.
But both the Government and the Reserve Bank India is addressing this issue with a sense of
urgency. Overall, one can expect that the portfolio of ICICI Prudential Top 100 Fund to do
well in the long term, once the economy recovers.
Key Performance Statistics
The table below shows the key performance statistics of ICICI Prudential Top 100 Fund.

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Dividend History
ICICI Prudential Top 100 Fund has a very strong dividend pay-out track record. The fund has
paid dividends every year since inception, even in difficult market conditions. The dividend
yield is also quite good, as you can see in the table below.

Interpretation:
ICICI Prudential Top 100 Fund has delivered 18 years of strong performance. Investors can
investment in this fund, both in lump sum or through the Systematic Investment Plan or SIP
mode, towards their long term financial goals like retirement planning etc. However, you
should have a long investment horizon to get the best results. Investors who wish to earn tax

44 | P a g e
free dividends can also invest in ICICI Prudential Top 100 Fund. While the fund has a great
dividend pay-out track record, investors should remember that mutual funds cannot assure
dividend pay-outs either with respect to the amount or the frequency of pay-outs. Investors
should consult with their financial advisors if ICICI Prudential Top 100 Fund is suitable for
their investment portfolios.

ICICI Prudential Value Discovery

Diversified Equity oriented

Launched on: August2004

Benchmark index: S&P BSE 500

Plan: Growth

Key Parameters

Standard deviation: 15.82 Expense ratio: 2.23% Beta: 1.01

R-squared: 0.78 Alpha: 10.57 AUM: Rs 17305.8 crore (March 31, 2017)

This plan was chosen on account of its good performance and selection of industries. With a
diversified portfolio it gives a good chance for the investors to get good returns. A reasonable
expense ratio given the R-squared with a good yet limited correlation, this fund involves the
skill of fund manager to beat the index. It’s a fairly large asset under management and a
positive alpha which makes it a good bet for putting money to get long term capital
appreciation. Its Beta is 1.01 which shows that fund will beat the market in a bullish run and

45 | P a g e
vice-versa. The fund manager chooses stocks that are undervalued and hence fund has good
prospects of earning good returns in a bullish run.

Figure 3SIP Returns for past 10 year

Figure 4Rolling for a 3-year period

Figure 5 Annual returns since inception

4.4 Debt Funds

Debt Funds primarily invests in bonds and other debt instruments, and will suit investors who
want to optimize current income assuming low to moderate levels of risk.
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  ICICI Prudential Flexible Income Plan
Short term parking option, seeking liquidity and returns on short term surpluses.
 ICICI Prudential Savings Fund
Short term deployment of surplus funds with potential of earning accrual returns from a fund
with allocation to good credits.
 ICICI Prudential Ultra Short Term Plan
Medium term investment seeking returns linked to fixed income markets, without taking
significant price risk.
 ICICI Prudential Liquid Plan
Very short term parking of idle surplus cash that offers steady returns potential and high
liquidity with zero mark to market risk.

Others categories are as below:

 ICICI Prudential Short Term Plan
 ICICI Prudential Money Market Fund
 ICICI Prudential Income Plan
 ICICI Prudential Gilt Fund Investment Plan-PF Option
 ICICI Prudential Gilt Fund Treasury Plan-PF Option
 ICICI Prudential Long Term Plan
 ICICI Prudential Short Term Gilt Fund
 ICICI Prudential Corporate Bond Fund
 ICICI Prudential Long Term Gilt Fund
 ICICI Prudential Income Opportunities Fund
 ICICI Prudential Dynamic Bond Fund
 ICICI Prudential Regular Savings Fund
 ICICI Prudential Banking And PSU Debt Fund
 ICICI Prudential Fixed Maturity Plan (FMP)
 ICICI Prudential Multiple Yield Fund (MYF)
 ICICI Prudential Capital Protection Oriented Fund
 ICICI Prudential Constant Maturity Gilt Fund

4.5 Deciding between Debt vs. Equity

BASIC POINTS EQUITY FUND DEBT FUND

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• Investment objectives - For growth and wealth
creation, equities would be a
better option depending on
the investment duration and
return expectation.
Debt is advisable for those
looking to generate income
through their investments
because it provides more
certainty of return.

• Investment duration - . Equity funds should ideally

Debt funds are better for
be held for duration longer
shorter durations, preferably
than 5 years 5 years or less.
• Returns expected Usually, high return is
Less return is expected in
expected from equity fund.
case of debt fund as
compared to equity fund .
• Risks involved- High risk is involved in Comparatively low risk is
Equity funds. involved in Debbt funds.

• Tax applicable – Equity investments are Debt funds, on the other

highly tax efficient with zero hand, attract short-term
tax for holdings longer than 1 capital gains tax before 3
year. years and long term capital
gains with indexation after 3
years.

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 CHAPTER - V
Suggestion Conclusion

5.1 Conclusions :

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In conclusion I would like to state that there is a very high need for the spread of awareness
among the people for various investment products. When people are aware of these products
then only they will invest their money confidently and safely also .
The money that is invested will ultimately go towards nation building and the development of
the country. So the marketers should choose the best way to spread the true information
about their plan’s benefits so that people can able to select the right plan to invest their
incomes .
In this study it has been found that in this era investment in mutual fund is very safe way and
systematic investment plan in the most effective way of investing in market especially in a
volatile market . SIP in mutual fund is a way to invest in a regular and disciplined manner
while taking care of volatility .
It is yet another investment technique which helps in mitigation of risk in terms of the entry
point in an equity fund .

5.2 Suggestions :-

After analyzing the data and presenting the findings of the study I would like to give the
some recommendations :-

Spread information among the Young Professionals :- There are many industries like call
centers where the bulk of employees are young. These people have recently entered the
workforce and have started earning. The level of awareness among these people regarding
investment is less and the company must make efforts to spread the awareness among these
professionals. This can be done by means of posters pasted within the campus of these
organizations.
The companies can also set up canopies in places like canteens where the people come
frequently. The company can offer various investment products to the people via these
canopies.
Make aware among General Public :-The general public can be made aware about
investment opportunities by use of canopies set up in public places like malls, metro stations
marketplaces etc.

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 Annexure

And
Bibliography

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  Annexure :-

Questionnaire
Dear Sir/ Madam ,
I am ALPHA RAJESWARI PATRA , a student of DDCE, UTKAL UNIVERSITY,
Bhubaneswar doing my project work on “ICICI PRUDENTIAL EQUITY FUNDS”
at WALLET4WEALTH, Bhubaneswar . I request you to help me in my research by
filling the questionnaire . The purpose of this study is purely academic and information
will not be disclose for any commercial purpose .

Name:- ____________________
Age:- _____________________
Gender:- __________________
Date:- ____________________
Email id:- _________________
Phone no:- ________________
Annual Income:- _____________
1) Which of the following investment options are you aware of? Please indicate level of
awareness for each
(A) Shares (B) Mutual Funds (C) Insurance
(D) Savings bank A/c (E) Fixed Deposits (F) Others

2) What will you consider more important before investing in any instrument?
(A) Return of the investment (B) Risk associated (C) Both risk and return

3) Do you feel that past performance of an instrument is a good indicator of the possible
future performance?
(A) Yes (B) No (C) Can‟t Say

4) From which of the following sources you take Information/Suggestion before

investing?
(A) Media (Newspaper, Magazines, Internet) (B)Friends and Family
(C) Investment Advisors/ Financial Planners (D) Brochures of Various Companies
(E) Others ____________________ (Please Specify)
5) What is the level of returns that you will expect your investment to generate?
(A) 8-10% (B) 10-12% (C) 12-15% (D)15-20% (E) >20%

6) When do you feel is the best time to invest?

(A) When the market (Sensex) is at a peak level

(B) When the market is at a low level

(C) One must invest regularly irrespective of the market level

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(D) Can’t say

7 )When is the best time to start an investment?

(A) As soon as possible

(B) Investment should start after earning sufficient amount of money

(C) Can’t Say

8 According to you for how long should one invest the money?

(A) < 1 year (B)1-3 years (C)3-5 years (D)> 5 years

9) According to you what is better form of portfolio?

(A) Large diversified portfolio (B) Small concentrated portfolio (C) Can’t Say

10) According to you which is a better form of investment

(A) Investing a small amount regularly

(B) Investing a big amount at one time

(C) Don’t Know

11) Which of the following schemes are you aware of?

(A) Equity Linked Saving Scheme (ELSS)

(B) Unit Linked Insurance Plan (ULIP)

(C) Systematic Investment Plan (SIP)

(D) Others __________________ (Please Specify)

(E) Not aware of any schemes

12) What do you think is the minimum amount possible for starting an SIP?

(A) Rs. 100 (B)Rs. 500 (C) Rs. 1000 (D) Rs. 5000 (E) Don’t Know

13) Can one save tax by investing in Mutual Funds?

(A) Yes (B) No (C) Don’t Know

14) Will you prefer to invest in ICICI Mutual Fund?

( A) Yes (B) No (C)Don’t Know

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  Bibliography :-

 Books And Magazines :-

 Financial Market and Services , E. Gordon and K. Natrajan
 Financial Services , M Y Khan
 Financial Services in India , Kothari Sage
 Financial Services and Markets , D. Pandyan
 Financial Service , S. Guru Swami
 Indian Financial System , Khan
 Investime magazine
 Websites :-
 www.wallet4wealth.com
 https://www.icicipruamc.com
 http://www.moneycontrol.com
 https://www.nseindia.com
 https://www.advisorkhoj.com
 http://www.bseindia.com
 http://www.sebi.gov.in

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