Introduction

A Mutual Fund is a body corporate registered with the Securities and Exchange Board of India

(SEBI) that pools up the money from individual/corporate investors and invests the same on

behalf of the investors/unit holders, in Equity shares, Government securities, Bonds, Call Money

Markets etc… and distributes the profits. Mutual Fund is a mechanism for pooling the resources

by issuing units to the investors and investing funds in securities in accordance with objectives as

disclosed in offer document. Mutual Fund is the most suitable investment for the common man

as it offers an opportunity to invest in a diversified, professionally managed basket of securities

at a relatively low cost. Mutual funds enables even the small investors access to professionally

managed, diversified portfolios of equities, bonds and other securities, which would be quite

difficult (if not impossible) to create with a small amount of capital. Each shareholder

participates proportionally in the gain or loss of the fund. Mutual fund units, or shares, are issued

and can typically be purchased or redeemed as needed at the fund's current net asset value

(NAV) per share, which is sometimes known as NAVPS.

The idea of mutual funds can be traced to Belgium where ‘Society Generale de Belgique’ was

established in 1822 as an investment company to finance investments in national industries. This

concept of mutual fund spreads to USA in the early 20 th century and three investment companies

were started in 1924. In the periods after the Second World War the mutual fund culture was

increasing in USA. Since then it has been spreading all over the world. The first introduction of a

mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of

India (UTI). Until 1987, UTI enjoyed a monopoly in the Indian mutual fund market.

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Then a host of other government-controlled Indian financial companies came up with their own

funds. These included State Bank of India, Canara Bank, and Punjab National Bank. This market

was made open to private players in 1993, as a result of the historic constitutional amendments

brought forward by the then Congress-led government under the existing regime of

Liberalization, Privatization and Globalization (LPG). The first private sector fund to operate in

India was Kothari Pioneer, which later merged with Franklin Templeton.

ICICI

ICICI Bank is India's second-largest bank. It is a privately owned bank. The Bank has a network

of 2,755 branches and 9,363 ATMs in India, and has a presence in 19 countries, including India.

ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution.

In 1999, ICICI become the first Indian company and the first bank or financial institution from

non-Japan Asia to be listed on the NYSE.

SBI

State Bank of India is the largest banking and financial service company in India by revenue and

total assets. It is a public sector bank. The bank traces its ancestry to British India, through the

imperial bank of India, which was formed by merging of bank of madras with two presidency

banks, making it the oldest bank in India. State Bank of India started mutual fund only on

November 1987. It was only second mutual fund in India.

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Statement of the problem:

A mutual fund is a trust that collects the income of a number of investors who share a common

financial goal and pools it together to create a larger resource of money. Thus the money

collected is invested by the fund manager in different type of securities according to the

objective of the scheme. These could range from shares to debentures to money market

instruments. These could be subdivided into pharmaceutical securities, technological securities,

FMCG securities etc... The income earned through these investment and capital appreciation

realized by the schemes are shared by its unit holders proportionately ie on the basis if number of

units owned by them (pro-rata).

In recent year’s mutual fund has emerged as a tool for ensuring one’s well-being .They has not

only contributed to India’s growth but have also helped into success of India. So after paying

grocery bills, home loan installments, tuition fees and the likes, people have started to save some

pennies and have made up the mind to invest in mutual fund.

Today due to more competition between the mutual fund companies, they are providing a great

variety of schemes to attract thenand satisfy their customers. We can see that there are more

schemes of different companies with same features They also come with a number of different

investment objectives that are launched from time to time like schemes according to maturity

period, schemes according to investment objectives, special schemes etc. Your pile of investment

will only grow when you will invest in the right fund taking into account your investment

objectives. This project will compare the different schemes of ICICI Mutual fund and SBI

Mutual fund in this respect.

3
Scope of the study:

The main scope is to get correct knowledge regarding various mutual fund schemes that are

available through ICICI Mutual fund and SBI Mutual fund. There are plenty of schemes

available in the market that caters to meet the personal financial obligations such as children's

education, marriage, retirement etc.. of an investor. Unless the mutual fund schemes are tailor-

made to the investor’s changing needs and unless the AMC’s understand the selecting

or switching or switching behavior o f t h e i n v e s t o r s , s u r v i v a l o f   funds will be

difficult in future. With this background an attempt is made in this to study the performance of

various funds of ICICI and SBI at various point of time and its volatility.

The project is limited to comparison of mutual fund schemes of ICICI Mutual fund and SBI

Mutual fund. As a result of the big boom witnessed in the mutual fund industry in recent times,

they are trying to gain more market share in the rapidly improving market.

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Objectives of the study :

Primary Objectives:

Comparison of mutual fund schemes of ICICI Prudential Fund and SBI MF

Secondary Objectives:

a. To analyze various schemes of ICICI Prudential Fund and SBI Mutual Fund

b. To find whether customers prefer to invest in mutual funds in ICICI Prudential Fund or SBI

Mutual Fund.

c. To analyze merits and demerits of investing in mutual funds of ICICI Prudential Fund and SBI

Mutual Fund

Methodology:

Convenience sampling method is used

Primary Data:

Primary data include data which are collected for the first time they are original in character.

They are collected by the researcher for the first time for his own use.

a. Questionnaire

b. SAMPLE SIZE 20 GENERAL INVESTORS

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Secondary Data:

Secondary data are those which have already been collected by others. When it is

not possible to collect data in primary form the researcher may take the h e l p o f

Secondary data.

a. Newspaper

b. Websites

c. Brochures Published by banks

Tools of analysis:

Percentage analysis and pie charts have been used to depict which of the two ie SBI Mutual

fund and ICIC Mutual fund have better investment plans.

Various other charts and graphs have been used for supporting the data.

Limitations:

a. Errors While collection of data.

b. Time limit.

c. Response of customer

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Review of literature

INTRODUCTON

A mutual fund is just the connecting bridge or a financial intermediary that allows a group of

investors to pool their money together with a predetermined investment objective. The mutual

fund will have a fund manager who is responsible for investing the gathered money into specific

securities (stocks or bonds). When you invest in a mutual fund, you are buying units or portions

of the mutual fund and thus on investing becomes a shareholder or unit holder of the fund.

Mutual funds are considered as one of the best available investments as compare to others they

are very cost efficient and also easy to invest in, thus by pooling money together in a mutual

fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to

do it on their own. But the biggest advantage to mutual funds is diversification, by minimizing

risk & maximizing returns.

A mutual fund serves as a link between the investor and the securities market by mobilizing

savings from the investors an divesting them in the securities market to generate returns. Thus, a

mutual fund is akin to portfolio management services (PMS). Although, both are conceptually

same, they are different from each other. Portfolio management services are offered to high net

worth individuals; taking into account their risk profile, their investments are managed

separately. In the case of mutual funds, savings of small investors are pooled under a scheme and

the returns are distributed in the same proportion in which the investments are made by the

investors/unit-holders.

Definitions of Mutual Fund

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Securities and Exchange Board of India (Mutual Fund) Regulations (SEBI), 1996 define mutual

fund as “a fund established in the form of a trust to raise monies through the sale of units to the

public or a section of the public under one or more schemes for investing in securities, including

money market instruments”.

According to the above definition, a mutual fund in India can raise resources through sale of

units to the public. It can be setup in the form of a Trust under the Indian Trust Act. The

definition has been further extended by allowing mutual funds to diversify their activities in the

following areas:

· Portfolio management services

· Management of offshore funds

· Providing advice to offshore funds

· Management of pension or provident funds

· Management of venture capital funds

· Management of money market funds

· Management of real estate funds

Merriam –Webster’s Dictionary defines mutual fund as “ an open-end investment company that

invests money of its shareholders in a usually diversified group of securities of other

corporations”.

The Wikipedia has defined mutual fund as “a type of professionally-managed collective

investment scheme that pools money from many investors to purchase securities.[1]

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While there is no legal definition of mutual fund, the term is most commonly applied only to

those collective investment schemes that are regulated, available to the general public and open-

ended in nature”.

The investopedia defines mutual fund as an investment vehicle that is made up of a pool of funds

collected from many investors for the purpose of investing in securities such as stocks, bonds,

money market instruments and similar assets. Mutual funds are operated by money managers,

who invest the fund's capital and attempt to produce capital gains and income for the fund's

investors. A mutual fund's portfolio is structured and maintained to match the investment

objectives stated in its prospectus.

Types of Mutual Funds

The concept of mutual funds has proven to be immensely popular among investors. The relative

simplicity of mutual funds make them attractive to small investors and those who are

inexperienced in the stock market or do not have the time to study stock market trends and invest

accordingly.

Various criteria can be used to differentiate Mutual Funds. Each type of mutual fund has a

specific investment objective

Some characteristics based on which mutual funds can be classified are:

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  The asset class in which the mutual fund has made invested - for example stock or equity-

based funds, bond mutual funds, money market mutual fund etc.

 The sector in which the mutual fund predominantly invests - for example Power sector,

energy sector etc.

 Investment objective of the mutual fund - for example growth fund or monthly income

funds

 Flexibility of number of shares in the mutual fund - for example open-ended or closed

end funds

 Type of equity investments of a mutual fund such as blue chip mutual fund or large cap,

mid cap or small cap mutual funds

 Other special investment funds such as index funds or hedge fund

Types of Mutual Funds based on Asset Class

Here are a few types of mutual funds based on asset class investment

1. Equity Fund

This type of mutual fund makes investments in the stocks of companies listed on major

share markets. Equity Mutual Funds help in shielding unseasoned investors from the risk

they would have incurred if they had directly invested in the stock market. The fund

manager makes the investment decisions for the investor.

In Equity mutual funds, the fund portfolio may be mixed, having stocks from various

sectors or they may concentrate on a particular sectors. They may also tilt towards

10
 largecap or mid cap stocks. Fund information may list the stocks invested by the fund and

may also give their weightage.

2. Bond or Debt funds

Bond or Debt mutual funds include bonds issued by the Government and other

institutions in their fund portfolio. The portfolio of the mutual fund may include

investments in a mix of Government securities, corporate bonds, Public Sector Unit

(PSU) bonds as also securitized debt.

Bonds are more secure than shares as they are usually fixed-interest, though not always.

Investments in government bond are also said to be a refuge of stability. This is ideal for

those investors looking for low risk, high stability and regular income.

The mutual fund portfolio can be studied to see the percentage of investments in various

types of bonds.

 Types of Mutual Funds according to Returns

1. Growth fund

This type of mutual fund targets aggressive capital appreciation. The financial objective

of a growth fund is to see the investment exhibit optimal growth over a period of time.

This approach is riskier and more volatile than a regular income mutual fund.

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 2. Dividend or regular income funds

As the name implies, the investment objective here is regular income in the form of

dividends. Capital appreciation is not the important goal. Regular income funds are safer

than a Growth fund.

 Types of mutual fund according to schemes

1. Open - Ended Schemes:

An open-end fund is one that is available for subscription all through the year. These do not have

a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV")

related prices. The key feature of open-end schemes is liquidity.

2. Close - Ended Schemes:

These schemes have a pre-specified maturity period. One can invest directly in the scheme at the

time of the initial issue. Depending on the structure of the scheme there are two exit options

available to an investor after the initial offer period closes. Investors can transact (buy or sell) the

units of the scheme on the stock exchanges where they are listed. The market price at the stock

exchanges could vary from the net asset value (NAV) of the scheme on account of demand and

supply situation, expectations of unit holder and other market factors. Alternatively some close-

ended schemes provide an additional option of selling the units directly to the Mutual Fund

through periodic repurchase at the schemes NAV; however one cannot buy units and can only

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sell units during the liquidity window. SEBI Regulations ensure that at least one of the two exit

routes is provided to the investor.

3. Interval Schemes: Interval Schemes are that scheme, which combines the features of

open-ended and close-ended schemes. The units may be traded on the stock exchange or

may be open for sale or redemption during pre-determined intervals at NAV related

prices

 Some Special Mutual Funds

1. Hybrid or Balanced Funds

This type of mutual fund makes investments across a range of assets. A hybrid or balanced

fund portfolio may include equity or stocks, bonds and debt, cash and other assets

2. Fund of Funds

This special type of mutual fund invests in other mutual funds all over the world or in specific

countries. The mutual fund portfolio in this case would include sub-funds.

Advantages of Mutual Fund

 Diversification

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Using mutual funds can help an investor diversify their portfolio with a minimum investment. 

When investing in a single fund, an investor  is actually investing in numerous securities. 

Spreading your investment across a range of securities can help to reduce risk.  A stock mutual

fund, for example, invests in many stocks - hundreds or even thousands.  This minimizes the risk

attributed to a concentrated position.  If a few securities in the mutual fund lose value or become

worthless, the loss may be offset by other securities that appreciate in value.  Further

diversification can be achieved by investing in multiple funds which invest in different sectors or

categories.  This helps to reduce the risk associated with a specific industry or category. 

Diversification may help to reduce risk but will never completely eliminate it.  It is possible to

lose all or part of your investment

 Professional Management

Mutual funds are managed and supervised by investment professionals.  As per the stated

objectives set forth in the prospectus, along with prevailing market conditions and other factors,

the mutual fund manager will decide when to buy or sell securities.  This eliminates the investor

of the difficult task of trying to time the market.  Furthermore, mutual funds can eliminate the

cost an investor would incur when proper due diligence is given to researching securities.  This

cost of managing numerous securities is dispersed among all the investors according to the

amount of shares they own with a fraction of each dollar invested used to cover the expenses of

the fund.  What does this mean?  Fund managers have more money to research more securities

more in depth than the average investor.  

 Convenience

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With most mutual funds, buying and selling shares, changing distribution options, and obtaining

information can be accomplished conveniently by telephone, by mail, or online. Although a

fund's shareholder is relieved of the day-to-day tasks involved in researching, buying, and selling

securities, an investor will still need to evaluate a mutual fund based on investment goals and

risk tolerance before making a purchase decision.  Investors should always read the prospectus

carefully before investing in any mutual fund.

 Transparency

All fund houses give a detailed break up of their portfolio and come out with new letters every

month. There NAVs are easily available on line and in newspapers too. AMFI regulates all

mutual funds ensuring that they follow rules and are managed well.

 Potential of Returns

Returns in the mutual funds are generally better than any other option in any other avenue over a

reasonable period. People can pick their investment horizon and stay put in the chosen fund for

the duration. Equity funds can outperform most other investments over long periods by placing

long-term calls on fundamentally good stocks. The debt funds too will outperform other options

such as banks.

Disadvantages

 No Guarantees

No investment is risk free. If the entire stock market declines in value, the value of mutual fund

shares will go down as well, no matter how balanced the portfolio. Investors encounter fewer

15
risks when they invest in mutual funds than when they buy and sell stocks on their own.

However, anyone who invests through a mutual fund runs the risk of losing money.

 Fees and commissions

All funds charge administrative fees to cover their day-to-day expenses. Some funds also charge

sales commissions or "loads" to compensate brokers, financial consultants, or financial planners.

Even if you don't use a broker or other financial adviser, you will pay a sales commission if you

buy shares in a Load Fund.

 Taxes

During a typical year, most actively managed mutual funds sell anywhere from 20 to 70 percent

of the securities in their portfolios. If your fund makes a profit on its sales, you will pay taxes on

the income you receive, even if you reinvest the money you made.

 Management risk

When you invest in a mutual fund, you depend on the fund's manager to make the right

decisions regarding the fund's portfolio. If the manager does not perform as well as you had

hoped, you might not make as much money on your investment as you expected. Of course, if

you invest in Index Funds, you forego management risk, because these funds do not employ

managers

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INDUSTRY PROFILE AND COMPANY PROFILE

Industry Profile

A Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal. The money thus collected is then invested in capital market instruments such as

shares, debentures and other securities.

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The history of mutual funds, dates back to 19th century Europe, in particular, Great Britain.

Robert Fleming set up in1868 the first investment trust called Foreign and Colonial Investment

Trust which promised to manage the finances of the moneyed classes of Scotland by spreading

the investment over a number of different stocks. This investment trust and other investment

trusts which were subsequently set up in Britain and the US, resembled today’s close-ended

mutual funds. The first mutual fund in the US, Massachusetts Investors Trust, was setup in

March 1924. This was the first open-ended mutual fund.

The mutual fund industry in India started in 1963 with the formation of Unit Trust of India, at the

initiative of the Government of India and Reserve Bank .The history of mutual funds in India can

be broadly divided into four distinct phases.

Phases

FIRST PHASE – 1964-87 (MONOPOLY OF UTI)

An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the Reserve

Bank of India and functioned under the Regulatory and administrative control of the Reserve

Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial Development Bank of

India (IDBI) took over the regulatory and administrative control in place of RBI. The first

scheme launched by UTI was Unit Scheme 1964. At the end of 1988 UTI had Rs.6, 700crores of

assets under management

SECOND PHASE – 1987-93 (ENTRY OF PUBLICSECTOR FUNDS)

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1987 marked the entry of non- UTI, public sector mutual funds setup by public sector banks and

Life Insurance Corporation of India(LIC) and General Insurance Corporation of India (GIC). SBI

Mutual Fund was the first non- UTI Mutual Fund established in June 1987followed by Can bank

Mutual Fund (Dec 87), Punjab National Bank Mutual Fund (Aug 89), Indian Bank Mutual Fund

(Nov 89), Bank of India (Jun 90), Bank of Baroda Mutual Fund (Oct 92). LIC established its

mutual fund in June 1989 while GIC had set up its mutual fund in December 1990. At the end of

1993, the mutual fund industry had assets under management of Rs.47,004 crores.

THIRD PHASE – 1993-2003 (ENTRY OF PRIVATESECTOR FUNDS)

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund

industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the year in

which the first Mutual Fund Regulations came into being, under which all mutual funds, except

UTI were to be registered and governed. The erst while Kothari Pioneer (now merged with

Franklin Templeton) was the first private sector mutual fund registered in July 1993. The 1993

SEBI (Mutual Fund) Regulations were substituted by a more comprehensive and revised Mutual

Fund Regulations in 1996. The industry now functions under the SEBI (Mutual Fund)

Regulations 1996. The number of mutual fund houses went on increasing, with many foreign

mutual funds setting up funds in India and also the industry has witnessed several mergers and

acquisitions. As at the end of  January 2003, there were 33 mutual funds with total assets of

Rs.1,21,805 crores. The Unit Trust of India with Rs.44, 541 crores of assets under management

was way ahead of other mutual funds.

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FOURTH PHASE – SINCE FEBRUARY 2003

In February 2003, following the repeal of the Unit Trust of India Act1963 UTI was bifurcated

into two separate entities. One is the Specified Undertaking of the Unit Trust of India with assets

under the management of Rs.29, 835 crores as at the end of January 2003,representing broadly,

the assets of US 64 scheme, assured return and certain other schemes. The Specified Undertaking

of Unit Trust of India, functioning under an administrator and under the rules framed by

Government of India and does not come under the purview of the Mutual Fund Regulations. The

second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BO Band LIC. It is registered with

SEBI and functions under the Mutual Fund Regulations. With the bifurcation of the erstwhile

UTI which had in March 2000 more than Rs.76, 000 crores of assets under management and with

the setting up of a UTI Mutual Fund, conforming to the SEBI Mutual Fund Regulations, and

with recent mergers taking place among different private sector funds, the mutual fund industry

has entered its current phase of consolidation and growth. As at the end of October 31, 2003,

there were 31 funds, which manage assets of Rs.126726 crores under 386 schemes.

Working of Mutual fund

Mutual fund is set up in the form of a trust, which has sponsor, trustees, asset Management

Company (AMC) and a 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

20
benefit of the unit-holders. The AMC, approved by SEBI, manages the funds by making

investments in various types of securities. The 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.

Corporate Profile

SBI Funds Management Pvt. Ltd

SBI Funds Management Pvt. Ltd has a 25 years of rich experience in fund management. It is a

Joint Venture between SBI and AMUNDI (France), one of the world's leading fund management

companies. SBI Funds Management Pvt. Ltd has a network of over 222 points of acceptance

across India.

SBI Funds Management has been successfully managing and advising India's dedicated offshore

funds since 1988. SBI Funds Management was the 1st bank sponsored asset management

company fund to launch an offshore fund called 'SBI Resurgent India Opportunities Fund' with

an objective to provide our investors with opportunities for long-term growth in capital, through

well-researched investments in a diversified basket of stocks of Indian Companies.

SBI Funds Management is one of the largest investment management firms in India, managing

investment mandates of over 5.4 million investors. It has emerged as one of the largest player in

India advising various financial institutions, pension funds, and local and international asset

management companies.

Board of Directors of the AMC

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Mr. Pratip Chaudhuri -Chairman & Associate Director

Mr. Jayesh Gandhi

Independent Director

Mr. Deepak Kumar Chatterjee

Managing Director

Dr. H. Sadhak

Independent Director

Mrs. Madhu Dubhashi

Independent Director

Dr. H. K. Pradhan

Independent Director

Mr. Shyamal Acharya

Associate Director

Mr. Shishir Joshipura

Independent Director

Mr. Thierry Raymond Mequillet

Associate Director

Mr. Fathi Jerfel

Associate Director

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Mr. Philippe Batchevitch

Alternate Director to Mr. Jerfel

Performance Overview

SBI Mutual Fund saw a total inflow of Rs.4,65,364 crore (Previous year Rs.2,86,966 crore) in

the domestic open and close-ended funds during the year. The inflows took place predominantly

in the liquid and debt funds. The total redemption amounted to Rs.4,61,658 crore (Previous year

Rs.2,83,692 crore), leaving a net inflow of Rs.3,706 crore (industry net outflow Rs 49,406 crore)

as against a net inflow of Rs.3,274 crore (industry net inflow Rs.83,081 crore) in the previous

year. The closing assets under management of the domestic schemes of SBI Mutual Fund as on

31st March, 2011 were Rs.42,019 crore as against Rs 36,692 crore as on 31st March, 2010

Signifying a growth of 14.50%. The average assets under management, which were Rs.36,704

crore for the quarter ended 31st March, 2010, increased to Rs.41,672 crore for the quarter ended

31st March, 2011 signifying a growth of 13.54%.

Awards
Some of the awards won by SBI Mutual Fund Management Pvt Ltd

 2012

ICRA Mutual Fund Awards 2012 For Various Schemes

 2011

Readers Digest Awards 2011 For Trusted Brand in Fund Management Category

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 ICRA Mutual Fund Awards 2011 For Magnum Income Fund - Floating Rate Plan - Long

Term Plan

 2010

ICRA Mutual Fund Awards 2010 For Magnum Global Fund

 2009

ICRA Mutual Funds Awards 2009 For Magnum Tax Gain Scheme 1993

The Lipper India Fund Awards 2009 For Various Schemes

 2008

Outlook Money NDTV Profit Awards 2008

The Lipper India Fund Awards 2008 For Magnum Balanced Fund – Dividend

ICRA Mutual Fund Awards 2008 For Various Schemes

 2007

Outlook Money NDTV Profit Awards 2007

CNBC Awaaz Consumer Awards 2007

The Lipper India Fund Awards 2007 For Various Schemes

ICRA Mutual Funds Awards 2007 For Various Schemes

CNBC TV18 - CRISIL Mutual Fund of the Year Award 2007 For Various Schemes

ICICI Prudential Asset Management Company Ltd

ICICI Prudential Asset Management Company Ltd. (IPAMC/ the Company) is the joint venture

between ICICI Bank, a well-known and trusted name in financial services in India and Prudential

Plc, one of UK’s largest players in the financial services sectors. IPAMC was incorporated in the

24
year 1993.The Company in a span of over 18 years since inception and just over 13 years of the

Joint Venture, has forged a position of preeminence in the Indian Mutual Fund industry as the

third largest asset management company in the country, contributing significantly to the growth

of the Indian mutual fund industry. The Company manages significant Mutual Fund Asset Under

Management (AUM), in addition to Portfolio Management Services and International Advisory

Mandates for clients across international markets in asset classes like Debt, Equity and Real

Estate with primary focus on risk adjusted returns.

IPAMC has witnessed substantial growth in scale. From merely 2 locations and 6 employees

during inception to the current strength of over 700 employees with reach across around 150

locations, the growth momentum of the Company has been exponential. The organization today

is an ideal mix of investment expertise, resource bandwidth & process orientation. IPAMC’s

Endeavour is to bridge the gap between savings & investments to help create long term wealth

and value for investors through innovation, consistency and sustained risk adjusted performance.

Board of Directors: Asset Management Company

Ms. Chanda Kochhar - Chairperson

Mr. Barry Stowe

Mr. Suresh Kumar

Mr. Vijay Thacker

Mr. Dileep C. Choksi

Mr. N.S. Kannan

Mr. Nimesh Shah

Mr. C. R. Muralidharan

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Directors of the Trustee Company

Mr. M. S. Parthasarthy

Mr. M. N. Gopinath

Mr. Keki Bomi Dadiseth

Mr. Vinod Dhall

Mr. Sandeep Batra

Performance Overview

Performance of scheme:

. Average Assets under Management (AAUM)

The AAUM of the Mutual Fund for the quarter ended March 31, 2012 stood at Rs.

68,816.49 crore, while for the quarter ended March 31, 2011, the AAUM of the Mutual

Fund was Rs. 73,551.95 crore.

Awards and Recognition

Some of the prominent awards and recognition earned by ICICI Prudential are :

Bloomberg UTV Financial Leadership Awards 2011

 ICICI Prudential AMC received the coveted UTV Bloomberg Financial Leadership

Award 2011  for  “Best Contribution in Investor Education & Category Enhancement of

the year in the mutual fund category. Mr. Nimesh Shah , Managing Director, ICICI

26
 Prudential AMC received this prestigious accolade from Honorable Finance Minister,

Shri Pranab Mukherjee.

Morning Star Mutual Fund Awards – 2011

 India Debt Fund House Award– 2011

Business World  Mutual Fund Awards 2010

 ICICI Prudential Discovery Fund adjudged Emerging Leader (Based on past 3-year SIP

performance)

 ICICI Prudential Discovery Fund - Insti.1 adjudged Best Equity Fund – Mid and Small

Cap for the year 2010

 Mr Sankaran Naren adjudged Smartest Fund Manager (ICICI Prudential Discovery Fund)

for the year 2010

 Mr Sankaran Naren adjudged Best Equity  Fund Manager (ICICI Prudential Discovery

Fund ) for the year 2010

NDTV Profit Mutual Fund Awards 2010

 ICICI Prudential Discovery Fund - Category – Emerging Leader (Based on past 3-year

SIP performance)

Lipper Fund Awards  2010  India

 ICICI Prudential Dynamic Plan-Growth - Best Fund over 3 Years (Mixed Asset INR

flexible)

 ICICI Prudential Gilt Fund Investment Pl-PF Opt-Gth - Best Fund over 3 & 5 Years 

(Bond Indian Rupee – Government

27
 Option No of
s Respondents Percentag
e
Yes 18 90
No 2 10
Total 20 100

Awareness of SBI MF and ICICI Prudential Fund

Table 4.2

28
 20

18

16

14

12

10

0
Yes No

Graph 4.2

Out of the 20 people 90% of them knew about SBI MF and ICICI Prudential Fund

Company only a mere 10% was unaware of these mutual fund companies.

29
30
Reason to select SBI MF

Table 4.4

Opinion No of Percentag
respondents e
Reputation 8 40
Less risk 4 20
Low Transaction 1 5
cost
Public Company 7 35
Total 20 100

0
Reputation Less risk Low Transaction cost Public Company

Graph 4.4

31
This chart shows us that out of the 20 respondents 40% of would select SBI MF for its reputation

and 20% for its low risk and 5% for its low transaction cost and the rest i.e. 35% for its view as a

public company

32
Reason to select ICICI Prudential fund

Table 4.5

Opinion No of Percentag
Respondents e
Reputation 6 30
Less risk 4 20
Less Transaction 7 35
cost
Private Company 3 15
Total 20 100

33
 8

0
Reputation Less risk Less Transaction cost Private Company

Graph 4.5

In the above mentioned chart 30% of respondents selected ICICI because of its reputation , 20%

of them because of the factor that the risk involved is less, 35% i.e. the majority selected it as it

takes only a small amount as transaction and thereby saves investors’ money and 15% as it is a

private company.

34
 Scheme No of Percentag
Respondents e
Tax Gain Scheme 5 25
Blue chip fund 6 30
Gilt Fund 2 10
Gold exchange traded 3 15
scheme
Other 4 20
Total 20 100

SBI MF Scheme

Table 4.6

35
 7
6
5
4
3
2
1
0
e nd d e r
em fu un m the
Sc
h ip lt
F
che O
in ch Gi d
s
Ga ue de
x Bl tr a
Ta e
ang
ch
ex
ld
Go

Graph 4.6

Here 25% of respondents opted for tax gain scheme, 30% for Blue chip fund, 10% for gilt funds

15% for gold exchange traded schemes and 20% opted for other schemes

Preferable Blue Chip fund

Table 4.7

Company No of Percentage
Respondents
SBI MF 9 45
ICICI Prudential 11 55
Fund
Total 20 100

36
 12

10

0
SBI MF ICICI Prudential Fund

Graph 4.7

From the charts we can understand that only 45% of the respondents would invest in a Blue Chip

Fund scheme by the SBI MF compared to the 55% given to the ICICI Prudential Fund.

Better Gold ETF

Table 4.8

Company No of Percentag
Respondents e
SBI MF 12 60
ICICI Prudential 8 40
Fund
Total 20 100

37
 14

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.8

In the above Chart a massive 60% of the respondents were willing to invest in a gold ETF by the

SBI MF compared to the 40% for ICICI Prudential Fund.

Better Tax saving scheme

Table 4.9

Company No of Percentag
Respondents e
SBI MF 11 55
ICICI Prudential 9 45
fund
Total 20 100
38
 12

10

0
SBI MF ICICI Prudential fund

Graph 4.9

The above chart has shown us that 55% of the respondents would choose a Tax gain scheme

offered by the SBI Mutual Fund compared to 45% of the respondents who would choose one by

ICICI Prudential fund.

39
Better asset allocation

Table 4.10

Company No of Percentag
respondents e
SBI MF 8 40
ICICI Prudential 12 60
Fund
Total 20 100

40
 14

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.10

The chart shows us that only 40% of the respondents like to invest in SBI MF when taking asset

allocation into consideration and a massive 60% would invest in ICICI Prudential Fund.

Better Hybrid Schemes

Table 4.11

41
 Company No of Percentag
respondents e
SBI MF 10 50
ICICI Prudential 10 50
Fund
Total 20 100

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.11

From the given chart we can understand that Hybrid – Equity schemes given by both the

companies have an equal 50% demand.

42
More Volatile schemes

Table 4.12

Company No of Percentag
Respondents e
SBI MF 8 40
ICICI Prudential 12 60
Fund
Total 20 100

14

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.12

From the chart we can come to a conclusion that 40% of the agreed that SBI MF is having more

volatile schemes, while 60% said ICICI has more volatile schemes.

43
Better Liquid Fund Scheme

Table 4.13

Company No of Percentag
Respondents e
SBI MF 15 75
ICICI Prudential 5 25
Fund
Total 20 100

16

14

12

10

0
SBI MF ICICI Prudential Fund

Graph - 4.13

44
The chart shows us that most of the respondents i.e.75% say that SBI MF gives more Liquid

Funds schemes compared ICICI Prudential Fund where only 25% agree that it has better Liquid

schemes.

45
Better Income Fund returns

Table 4.14

Company No of Percentag
Respondents e
SBI MF 11 55
ICICI Prudential 9 45
Fund
Total 20 100

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.14

Here we can understand that 55% of the people believe that SBI MF gives a better income fund

return scheme than ICICI Prudential Fund which has only 45% of the in support of it.

46
Better Short Term Monthly Plan

Table 4.15

Company No of Percenta
Respondents ge
SBI MF 10 50
ICICI Prudential 10 50
Fund
Total 20 100

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.15

The above Chart Shows us that an equal percentage of the respondents i.e.50% think that both

the companies have schemes of equal status in short term monthly income plans.

47
Better Floating Plan
Table 4.16

Company No of Percentag
respondents e
SBI MF 7 35
ICICI Prudential 13 65
Fund
Total 20 100

14

12

10

0
SBI MF ICICI Prudential Fund

Graph 4.16

In the above mentioned chart 35% of the respondents say that SBI MF has a better floating plan

while 65% say that ICICI Prudential Fund.

48
Findings

1. Respondents are very much aware (i.e. 90%) of the existence of SBI MF and ICICI Prudential

Fund Company only a few of them was unaware of the existence of these mutual fund

companies.

2. We were able to find that half of the people in the sample had invested in SBI MF and the

remaining had equally invested in ICICI Prudential Fund and in other companies

3. Respondents say reputation as the major factor which encourages them to select SBI MF, next

in line comes the fact that it is a public company and then comes low risk and finally low

transaction cost.

4. In the case of ICICI Prudential Fund low transaction cost is the major factor which encourages

them to select it, next in line comes reputation and then comes low risk and finally as it is a

private company.

5. Most of the respondents say they like to invest in Blue chip schemes of SBI MF then comes

Tax gain schemes other schemes which are not mentioned in the questionnaire Gold ETF’s and

finally gilt funds.

6. The respondents were in Blue chip schemes offered by the ICCI Prudential Fund than the one

offered by SBI MF.

7. The respondents were willing to invest in a Gold ExchangeTrardedFund by the SBI MF

compared ICICI Prudential Fund.

8. Respondents choose a Tax gain scheme by the SBI MF more likely to be selected than one by

ICICI Prudential fund.

49
9. ICICI Prudential fund was selected as best over SBI MF when asset allocation was taken into

consideration.

10. Respondents said that both the companies have equally good Hybrid-Equity schemes.

11. When taking volatility ICICI Prudential fund Led and SBI MF came only second.

12. Majority of the respondents told SBI MF has better liquid schemes and only a few disagreed

with them.

13. SBI MF was selected as the company which has better income fund return scheme compared

to ICICI Prudential fund.

14. Respondents agreed on the fact that both the companies give equally good short term

monthly plans.

15. When Floating plans were taken ICICI Prudential fund was considered with better ones

compared to SBI MF.

16. Respondents consider SBI MF as a company with more reputation when compared with ICIC

Prudential Fund.

17. To sum up we were able to find that the number of people willing to invest in SBI MUTUAL

FUND was more when compared to that of ICICI PRUDENTIAL FUND.

50
Suggestions

1. We were able to understand that majority of the respondents chose SBI MF over ICIC

Prudential Fund; it means there various factors that make SBI’s schemes more likeable to

ICICI Prudential Fund. These problems have to found and erected

2. SBI MF should try to decrease transaction cost charged as it is seen that low transaction

cost by the ICIC Prudential Fund is helping it attract more customers.

3. The ICICI Prudential Fund is very poor on liquid fund schemes when compared to the

SBI MF it is an area which needs improvement.

4. Asset allocation is another factor that gives ICICI Prudential Fund a lead over SBI MF;

they should try to come over this as people really look at it before deciding an

investment.

5. It was also seen that SBI MF’s Tax saving scheme was not preferred much, this should be

changed as a lot of people invest to get out of paying income tax and so having a good

tax scheme will definitely attract more customers.

51
Conclusion
After all the analysis we can come to the conclusion that:

1. SBI Mutual Fund is a more preferred option to invest than ICICI Prudential fund.

2. Both the companies have their own advantages and disadvantages in the different

schemes they offer. For e.g. SBI Mutual Fund was told to have better liquid fund schemes

than ICICI Prudential fund but not so good when taking their Blue Chip fund schemes.

3. SBI Mutual Fund was selected as one with more reputation when compared to ICICI

Prudential fund.

4. Schemes offered by the SBI Mutual Fund are more preferred by the respondents.

5. Most of the respondents i.e. 100% were very much aware of the existence of SBI

Mutual Fund and ICICI Prudential Fund.

52