AMITY GLOBAL BUSINESS SCHOOL

Summer Report on

“MUTUAL FUND SIMPLIFIED”

Submitted toICICI SECURITIES, RANCHI

JHARKHAND

In partial fulfilment of the requirements for the award of theDegree of

Master of Business AdministrationIn

Finance And Marketing

By

SUBRATO BANERJEEA30101913093

MBA- 2013-15

Under the guidance of

Mr. HAVISH MADHAPADY

1

A Report On

[MUTUAL FUND SIMPLIFIED]

By

SUBRATO BANERJEE

A Report Submitted in partial Fulfilment of the requirements of MBA program.

Faculty Guide Industry Guide

Name- HAVISH MADHAPADY Name- Mr SUBHAJIT KOLEY

Amity Global Business School Designation- BRANCH MANAGER

Location-NOIDA Company Name- ICICI SECURITIES

Location-RANCHI

2

AMITY GLOBAL BUSINESS SCHOOL, NOIDAAMITY UNIVERSITY UTTAR PRADESH

CERTIFICATE OF ORIGIN

This is to certify that SUBRATO BANERJEE, a student of MBA from AGBS Amity

University, Noida under fulfilment of the course has successfully done his / her project on

MUTUAL FUND SIMPLIFIED of ICICI SECURITIES, RANCHI from 1st June to 31st

July. During the period we found him / her sincere and hardworking.

We declare that the work done by him / her is his / her own and original to the best of our

knowledge.

We wish him / her success and bright future in life.

Authorized signatory

Name-SUBHAJIT KOLEY

BRANCH MANAGER

(Signature)

DECLARATION

3

I, SUBRATO BANERJEE, student of MBA Finance and Marketing, hereby declare that

the Summer Internship Report titled “MUTUAL FUND SIMPLIFIED” which is

submitted by me to ICICI Securities, Ranchi in partial fulfilment of requirement for the

award of degree of Master of Business Administration has not been previously formed the

basis forth award of any degree, diploma or other similar title or recognition.

RANCHI

Date

Subrato Banerjee

Department of Finance and Marketing

Amity Global Business School , Noida

4

ACKNOWLEDGEMENT

It is my proud privilege to release the feelings of my gratitude to several persons who helped

me directly or indirectly to conduct this project work. I express my heart full in debt and owe

a deep sense of gratitude to my teacher and my faculty guide Mr HAVISH MADHAPADY,

Amity Global Business School,Noida and industry guide Mr Subhajit Koley, Branch

Manager, ICICI Securities ltd, Ranchi Club complex and Mr Nilanjan Roy, Training

Manager cum Regional Product manager, ICICI SECURITIES, Kolkata, for their sincere

guidance and inspiration in completing this project.

I am extremely thankful to faculty members of the Amity Global Business School for their

coordination and cooperation and thankful to Mr Havish Madhapady for his kind guidance

and encouragement.

I am also extremely thankful to all those persons who have positively helped me and ICICI

Securities customers who responded my questionnaire, around whom the whole project cycle

revolves.

I also thank all my friends who have more or less contributed to the preparation of this

project report. I will be always indebted to them.

Thanking you

Subrato Banerjee

5

PREFACE

This project has been undertaken in the partial fulfilment of our internship require during the

pursuance of MBA from Amity Global Business School Sec 125 Noida.

Practical internship is an essential part of every professional program. It is very helpful in

proving knowledge for the practical aspects of academic studies.

In the project title “MUTUAL FUND SIMPLIFIED” the area covered includes Marketing

and Finance. It has been my endeavour to bring out the procedure regarding efficient

collection of information, its presentation; and also the decision making process arising

they’re from.

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EXECUTIVE SUMMARY

This project report presents a study on “Mutual funds Simplified”. An Investor Awareness

initiative by ICICI Securities. This project has been prepared as part of summer training in

ICICI Securities. ICICI Securities ltd is one of the largest broker in the country and also

Mutual Fund distributor. It provides more than 26 financial instruments in which one can

invest to grow his/her wealth. The study is done for Spreading Awareness on the investments

in Mutual funds on the fingertips. The Project gave me a great learning experience and at the

same time it gave me enough scope to implement my theoretical knowledge in Practical

manner and helped in learning the client’s interaction as well as online investments in Mutual

Funds. This project undertaken deals with customer perception with regard to mutual funds

that is the schemes they prefer, the plans they are opting, the reasons behind such selections

and also this project dealt with different investment options, which people prefer along with

and apart from mutual funds. Like postal saving schemes, recurring deposits, bonds, and

shares. The findings from this project is that most of the people are hesitant in going for new

age investments like mutual funds and prefer to avert risks by investing in less riskier

investment options like recurring deposits and so. This Project report also gives detail study

about Icici direct, Icici Group and working of Icici direct. This Project is done through one to

one interaction with the clients and helping them out in understanding Mutual Funds and their

Investments.

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TABLE OF CONTENTS

Chapter 1- Introduction to Company………………………………………….11

1.1 About The Company………………………………………11

1.2 Overview…………………………………………………...12

1.3 ICICI Group………………………………………………..13

1.4 Global Presence…………………………………………….18

1.5 Vision Mission……………………………………………....19

1.6 Major Components…………………………………………24

1.7 ICICI Direct………………………………………………...30

1.8 Mutual fund…………………………………………………40

Chapter 2- Research Methodology……………………………………………45

2.1 Research Objective…………………………………………..46

2.2 Statement Of Problem……………………………………….47

2.3 Analysis And Outcome………………………………………48

Chapter 3- Limitation of Study…………………………………….……..……..51

Chapter 4- Findings…………………………………………………….….…….52

Chapter 5- Suggestions and Recommendation…………………………………..53

Chapter 6- Conclusion………………………………………………….………..54

Chapter 7- Questionnaire................................................................................…...55

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List of Tables

1.1 Company profile…………………………………..………………………………11

1.2 Report Analysis…………………………………………………….……………...48

9

List of Figures

1.1 ICICI Group………………………………………………………..13

1.2 Geographical spread of customers of ICICI……………………………………………………………...14

1.3 Pie Chart on report………………………………………………….48

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CHAPTER- 1INTRODUCTION TO COMPANY

TRAINING ORGANISATION AND ITS OPERATIONAL STRUCTURE

TABLE 1.1

Company Name ICICI Securities

Founded In 1995

Parent Company ICICI Limited

Headquarter Mumbai

Chairperson Mrs. Chanda D. Kochhar

Managing Director Mr. Anup Bagchi

Website www.icicisecurities.com

www.icicidirect.com

1.1 ABOUT THE COMPANY:

ICICI Securities Limited provides various investment banking products and services to

corporates, financial institutions, and retail investors in India and internationally. It

provides corporate finance services to corporations, financial institutions, financial

sponsors, and government, which include equity capital market products, such as initial

public offerings (IPO), further public offerings, rights offerings, convertible offerings,

qualified institutional placements, non-convertible debentures, buyback, delisting, and

open offers and international offerings for unlisted and listed entities. The company also

offers mergers and acquisitions advisory services; and private equity advisory.

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1.2 OVERVIEW

ICICI Securities Ltd is an integrated securities firm offering a wide range of services

including investment banking, institutional broking, retail broking, private wealth

management, and financial product distribution. ICICI Securities sees its role as 'Creating

Informed Access to the Wealth of the Nation' for its diversified set of client that includes

corporates, financial institutions, high net-worth individuals, and retail investors.

Headquartered in Mumbai, ICICI Securities operates out of 66 cities and towns in India and

global offices in Singapore and New York. ICICI Securities Inc., the step-down wholly

owned US subsidiary of the company is a member of the Financial Industry Regulatory

Authority (FINRA) / Securities Investors Protection Corporation (SIPC). ICICI Securities

Inc. activities include Dealing in Securities and Corporate Advisory Services in the United

States. ICICI Securities Inc. is also registered with the Monetary Authority of Singapore

(MAS) and operates a branch office in Singapore.

Brief about ICICI Group

The Industrial Credit and Investment Corporation of India Limited (ICICI) incorporated at

the initiative of the World Bank, the Government of India and representatives of Indian

industry, with the objective of creating a development financial institution for providing

medium-term and long-term project financing to Indian businesses. Mr A.Ramaswami

Mudaliar elected as the first Chairman of ICICI Limited. ICICI emerges as the major source

of foreign currency loans to Indian industry. Besides funding from the World Bank and other

multi-lateral agencies, ICICI was also among the first Indian companies to raise funds from

international markets.

1.3 ICICI GROUP

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1. ICICI Bank

2.ICICI Prudential Life Insurance Company

3.ICICI Securities Limited

4.ICICI Securities Primary Dealership Limited

5.ICICI Lombard General Insurance Company

6.ICICI Prudential Asset Management Company

7.ICICI Venture

8.ICICI Home Finance Company

Figure1.1- ICICI group

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Figure 1.2- geographical spread of customers of ICICI

2.8 million customers

Largest E-Brokerage House in India

Customers across in 20 countries , 1255 cities and 8671 Pincodes

53.3 bn Mutual Fund Asset Under Management

Rs. 450 billion of Equity Holdings

Figure 1.3- ICICI Direct

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ICICI Direct Advantage - One stop financial solutions providerComprehensive and integrated approach to manage your finances.

Service excellence

Diversified customer baseCustomer focus

Value for Money

Seamlessly integrated products

Investment

PerformanceAward winning

platformOutstanding long term performer

Management Team

Anup Bagchi

MD & CEO

Ajay Saraf

15

Anup Bagchi is the Managing Director and CEO of ICICI Securities, a leading firm in the capital markets space in the country. Its Investment Banking team helps raise capital for India Inc – both equity and debt – both publicly and privately placed. In the secondary market, its broking teams cover both, institutional and retail clients with ICICIdirect.com enjoying significant market leadership.

Mr Bagchi was the Executive Director at ICICI Securities Ltd. He was responsible for the development and business growth of the retail broking, distribution of retail financial products, and wealth management services.The firm has been winning the prestigious Outlook Money - India’s Best e-Brokerage House for the past seven consecutive years. The e-brokerage firm also won the CNBC AWAZ Consumer Award for the Most Preferred Brand of Financial Advisory Services.

Prior to ICICI Securities, Mr Bagchi was the head of International Retail Banking Group (IRBG) of ICICI Bank Ltd, the second largest bank in India, where he was responsible for driving profits and pursuing retail focus in the International banking division.During his tenure of 17 years with ICICI Bank, Mr Bagchi has held many key positions in field of Retail Banking, Corporate Banking and Treasury.

Mr. Bagchi has been honoured with The Asian Banker Promising Young Banker Award as well as Business Today has recognised him as one of India's Hottest Young Executives. Mr Bagchi holds a Management degree in Finance from IIM, Bangalore and also an engineering degree from IIT, Kanpur.

Mr Ajay is the Executive Director and Head of Corporate Finance and the Institutional Equities division of ICICI Securities.Prior to this, Ajay was Senior General Manager with ICICI Bank and led the Corporate Banking and SME businesses. As a senior business leader, Mr. Saraf has shown the ability to drive business results and has displayed great leadership skills during the fast growth phase in the Corporate Banking, SME and Mid-Market segments in the industry.

Ajay is a Chartered Accountant and a Cost Accountant.

Executive Director

Corporate Citizen (CSR)

The social initiatives programme of ICICI Securities has over the years focused

mainly on two areas: providing education and health to the poor and

marginalized children from our society. Under the aegis of ICICI Foundation,

ICICI Securities provides both financial and volunteering support to the

following two organisations: 

Door Step School - One of the most long standing associations has been with

Door Step, a NGO focused on spreading education to children residing in the

slums. The Colaba Municipal School, which is managed by the Mumbai

Municipal Corporation along with Door Step, was adopted by ICICI Securities

in 2004. The firm not only provides funds for hiring teachers, books and other

educational needs but also encourages its employees to spend some quality time

with the children through various activities like Diya making during Diwali or

playing a cricket match with the children.

Muktangan - ICICI Securities has also adopted the pre-primary section of a

municipal school in Lower Parel, Mumbai. This school is run by the Paragon

Charitable Trust through their CSO called Muktangan. Managed in

collaboration with the Brihanmumbai Municipal Corporation (BMC),

Muktangan conducts its classes in English. ICICI Securities supports this

educational programme that offers alternatives to orthodox educational practices

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Board of Directors

ICICI Securities Limited

Ms. Chanda D. Kochhar, Chairperson

Mr. Uday Chitale

Mr. Narendra Murkumbi

Ms. Zarin Daruwala

Ms. Shilpa Kumar

Mr. Anup Bagchi, Managing Director & CEO

Mr. Ajay Saraf, Executive Director

1.5.2 ICICI Securities Holding Inc

Mr. Sanker Parameswaran, Director

Mr. Sriram Iyer, Director

Mr. Warren Law

1.5.3 ICICI Securities, Inc

Mr. Anup Bagchi, Chairman

Mr. Ajay Saraf

Mr. Subir Saha

Mr. Jaideep Goswami

Mr. Bishen Pertab

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Mr. Rober

1.4 Global Presence

ICICI Securities, Inc., Singapore

30 Cecil Street, #15-29, Prudential Tower,

Singapore - 049712

Contact details for Institutional Investors (Only)Tel: +65 6232 2452

Fax: +65 6232 2455

ICICI Securities Inc. New York

415 Madison Avenue Suite 1427

New York, NY 10017

Tel: 646-673-8549

Fax: 212-202-4012

ICICI Securities Limited., Oman

461 MHD Corporate Office Building,

Ground Floor P.O.Box:2451,

PC: 112, Ruwi, Sultanate of Oman

Tel No: +968-24769000

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1.5 VISION & MISSION OF ICICI GROUP

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

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

Be the banker of first choice for our customers by delivering high quality, excellent

products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realisation of India’s potential.

Maintain a healthy financial profile and diversify our earnings across businesses and

geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we operate.

Create value for our stakeholders.

Privacy Policy

ICICI is strongly committed to protecting the privacy of its customers.

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Award & Recognition

Retail

ICICI Securities won the Award for Outstanding Social Impacts at the Global

Leadership Awards 2014 These awards recognize institutions for their contribution to

the society in their domain as well as businesses that deliver products and services in

ways that takes full account of their responsibility towards the communities they

touch.

"MOST ADMIRED SERVICE PROVIDER IN FINANCIAL SECTOR at the

BANKING FINANCIAL SERVICES & INSURANCE AWARDS 2014 presented by

ABP News.

ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' ninth time in a

row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009, 2010,

2011, and 2012.

ICICIdirect.com won the Mobbys award for the "Best Mobile application in Mobile

Trading."

ICICI Securities Business Partners has been conferred the Franchise India Awards

2013, for being the 'Franchisor of the year' in the Financial Services category.

ICICIdirect.com, won the award for Innovation at Banking Frontiers Finnoviti

Awards 2013. The award was conferred on ICICIDirect' for its `Valid Till Cancel

Order' (VTC ) facility, which was awarded amongst the top three innovations in BFSI

industry by 'Peer Voting'.

ICICI Securities won the Outlook Smart use Technology eRetailer of the year 2013

conferred by FIHL in association with HomeShop18.com.

ICICIdirect.com won the 'Stock Broker of the Year' award at the Money Today

FPCIL Awards 2012

ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the

Year' at the Franchise Awards 2012 for the fourth time in a row.

ICICI Securities won the 'BSE IPF D&B Equity Broking Awards 2012' under two

categories:

Best Equity Broking House - Cash Segment

Largest E-Broking House

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ICICI Securities won the Chief Learning Officer Award from World HRD Congress

for Innovation in learning category.

ICICI Securities won the Grand Jury Award for 'Commendable performance by

National Financial Advisor (Retail) - Online' at the CNBC TV 18 - Financial Advisor

Awards 2011. The awards recognize India's best Financial Advisors.

ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the

Year at the Franchise Awards 2011', third time in a row.

ICICI Securities was the winner of the ‘Smart use Technology eRetailer of the year'

2012 award conferred by Franchise India in association with UTV Bloomberg for the

first time.

ICICIdirect.com, won the Outlook Money ' Best e- Brokerage Award' seventh time in

a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009, and 2010.

ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of the

Year 2011' for the third consecutive year.

Anup Bagchi, MD & CEO has been honored with the Zee Business 'Industry

Newsmaker Award 2010' for his tremendous and unmatched contribution in the field

of Finance

Pankaj Pandey, Head- Research – ICICI direct has won the Zee Business Best Market

Analyst 2010 award in the Equities Fundamental Category

CMO Asia Awards for Excellence in Branding and Marketing 2010:

Brand Leadership Award (overall)

Campaign of the Year' for the Trade Racer Campaign

Brand Excellence in Banking and Financial Services for the store format

Award for Brand Excellence in the Internet Business

Franchisor of the year award 2009

Retail concept of the year awards 2009

Frost and Sullivan 2009 Award for Customer Service Leadership

ICICI direct, the neighborhood financial superstore won the prestigious Franchise

India `Service Retailer of the Year 2008 award.

ICICI direct has also won the CNBC AWAAZ 2007 Consumer Award for the Most

Preferred Brand of Financial Advisory Services.

Best Broker - Web 18 Genius of the Web Awards 2007

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Institutional

ICICI Securities awarded the Asiamoney `Best Domestic Equity House' for 2012

Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the media

sector for 2010

ICICI Securities has awarded as the Best Investment Bank 2008 by Global Finance

Magazine

The Corporate Finance group also was awarded a runner-up Best Merchant Banker by

Outlook Money in 2007.

ICICI Securities topped the Prime Database League Tables 2007 for money raised

through IPOs/FPOs.

The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asia

money.

Technology

ICICI Securities recently won the Innovation Award for Oracle Fusion Middleware.

ICICI Securities has consistently demonstrated the best usage of Oracle Tuxedo as an

OLTP engine. These Asia-Pacific awards honour customers for their optimum and

innovative solutions using Oracle Fusion Middleware.

Fairfax Business Media has recognized ICICI Securities as a recipient of CIO 100

Asia award in 2013.

ICICI Securities has been awarded the NASSCOM IT Innovation Awards 2013.

CIO Masters for Collaboration and Cloud was awarded by Biztech2 (Network 18) in

2013.

ICICI Securities has been conferred by Dataquest in 2012

Business Technology Excellence award

Business Technology Innovation award

IDG India has recognized ICICI Securities as a recipient of CIO 100 award in 2009,

2010, 2011 and 2012, four times in a row.

IDG India has conferred the CIO Hall of Fame award in 2012.

22

EMC Transformers Award was presented for best use of IT to transform business in

2012

CIO Masters for Virtualization was awarded by Biztech2 (Network 18) in 2012

ICICI Securities was the Bloomberg UTV CXO Awards Finalist for Best Utilization

of IT to Transform Business in 2011

ICICI Securities was conferred the Gold CIO award jointly by CIOL and Dataquest at

the Enterprise Awards 2010

ICICI Securities was the NASSCOM CNBC IT User Awards Finalist in 2009 and

2010

Indian Bank's Association Business Technology Awards was presented for Best

Online Trading Platform in 2006 and 2007

23

1.6 Major Competitors

HDFC Securities

Kotak Securities

SBI Capital

Share khan Broker

IDBI Capital

HSBC Invest Direct

Angel Broking

India bulls Services

Reliance Securities

Bajaj Capital

24

ICICI Securities provides services in three sectors

1. Institutional

2. Private Wealth management

3. Retail

1. Institutional

ICICI Securities facilitates access to capital for the growth engine of the Indian economy

which is the corporate sector including large, medium and small enterprises; both from the

public and private markets.

1.1 Corporate finance

Equity Capital Market

ICICI Securities has been at the forefront of capital markets advisory for several decades and

has been involved in most of the major public equity issuances in recent times. The company

was among the leading underwriters of Indian equity and equity linked offerings with

unparalleled execution capabilities. ICICI Securities provides end-to-end fund raising

solutions, from structuring to placement of the equity instrument. The firm's expertise include

Initial Public Offerings (IPOs), Further Public Offerings (FPOs), Rights Offerings,

Convertible Offerings, Qualified Institutional Placement (QIP), Non-convertible Debentures,

Buyback, Delisting, Open Offers and international offerings, for both, unlisted and listed

entities. ICICI Securities has successfully managed public issues of companies, which were

the first in their sector to tap the market - media both print and television, first Govt. of India

divestment IPO, first pure-play Internet Company in India, first mobile VAS Company, etc.

ICICI Securities was also involved in various pioneering issues in the Indian capital markets -

the first issue using the new alternate book-building (French Auction) method (NTPC), the

first issue of shares with Differential Voting Rights (Tata Motors), the first public issue of

Non-Convertible Debentures (Tata Capital), the first delisting using the reverse book-

building mechanism (Hewlett-Packard), etc. With offices across major financial centers (New

York, Singapore, Mumbai and Delhi), ICICI Securities delivers its products covering

corporates and investors across geographies.

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Key Recent Deals

In FY2010, ICICI Securities has helped companies raise ~ US$ 1.86 billion through

QIPs and IPOs in FY2010 Some of the recent transactions include:

IPOs

Jaypee Infratech: In 2010, Book Running Lead Manager, Rs. 22.6 bn

A2Z Maintenance & Engineering Services: In 2010, Book Running Lead Manager,

Rs. 8.6 bn

Punjab & Sind Bank: In 2010, Book Running Lead Manager, Rs. 4.7 bn

Claris Life Sciences : In 2010, Book Running Lead Manager, Rs. 3 bn

Parabolic Drugs: In 2010, Book Running Lead Manager, Rs. 2 bn

Commercial Engineers & Body Builders Co: In 2010, Book Running Lead Manager,

Rs. 1.7 bn

Adani Power: In 2009, Book Running Lead Manager, Rs. 30.2 bn

FPOs

NTPC: In 2010, Book Running Lead Manager, Rs 84.8 bn

Power Grid Corp. Of India: In 2010, Book Running Lead Manager, Rs 74.4 bn

Rural Electrification Corporation: In 2010, Book Running Lead Manager, Rs 35.3 bn

Shipping Corporation Of India: In 2010, Book Running Lead Manager, Rs 11.6 bn

Engineers India: In 2010, Book Running Lead Manager, Rs 9.6 bn

QIPs

Adani Enterprises: In 2010, Book Running Lead Manager, Rs. 40 bn

GMR Infrastructure: In 2010, Lead Manager, Rs. 14 bn

Lanco Infratech: In 2009, Book Running Lead Manager, Rs. 7.3 bn

Alok Industries : In 2010, Book Running Lead Manager, Rs. 4.2 bn

Network18 Media & Investments: In 2009, Book Running Lead Manager, Rs. 2 bn

Mergers and Acquisitions

ICICI Securities' Mergers and Acquisitions Advisory team creates and executes market-

leading solutions for clients' strategic business ambitions. Our mid-market focused M&A

practice is consistently among the top 3 investment banks in India. The M&A team is

proficient in domestic and international transactions including acquisitions, divestitures, joint

ventures, corporate restructurings, recapitalizations, spin-offs, mergers and exchange offers.

26

The team also works closely with the leading financials sponsors or private equity houses in

India. Our extensive knowledge of diverse industries and regulatory framework help us

innovate and tailor products and structures to best suit the clients short- and long-term

strategic objectives.

Private Equity

ICICI Securities has a dedicated practice to assist companies with capital mobilization

through the private equity / venture capital route across their life cycle. It helps companies to

raise capital during the seed, growth and expansion phases as well as acquisition financing,

structuring the deal to maximize value for all its stakeholders. It has extensive industry

knowledge across multiple sectors, wide-ranging deal structuring capabilities and thorough

grasp of the regulatory environment make us the 'banker of choice', for companies and private

equity funds alike. ICICI Securities have working relationships with all major private equity

players, both in India and abroad and can facilitate access for our clients to these investors.

We advice on a wide variety of products including mezzanine and private equity financing,

secondary sale transactions, pre IPO deals and preferential allotments by listed companies.

In the advisory space, some of the transactions advised by ICICI Securities in FY10

included the following:-

CEEBCO: In 2010, Exclusive Financial Advisor for Private Equity placement with

Tata Capital, USD 15mn

Muthoot Finance: In 2010, Exclusive Financial Advisor for Private Equity placement

with Barings and Matrix Partners, USD 17.5mn

A2Z Infrastructure: In 2009, Exclusive Financial Advisor for Private Equity

placement with Indian Equity partners, USD 32.4 mn

Shiv-vani: In 2009, Exclusive Financial Advisor for Private Equity placement with

Franklin Templeton, USD 20mn

PNB Housing Finance: In 2009, Exclusive Financial Advisor for Private Equity

placement with New Silk Route, USD 17mn

Institutional Equities

ICICI Securities assists global institutional investors to make the right decisions through

insightful research coverage and a client focused Sales and Dealing team. A dedicated and

specialized research team ensures flow of well thought-out and well-researched stock ideas

and portfolio strategies. The Sales and Dealing team has demonstrated strong sales and

27

execution capabilities of actionable ideas to clients which have resulted in good relationships

across geographies. ICICI Securities enjoys the first mover and market leader advantage in

the derivatives segment and offers the entire spectrum, from set-up to trading strategy. The

equity group leverages research and distribution reach to domestic and foreign institutional

investors in case of public offerings. The research team tracks over 15 key sectors of the

Indian economy and publishes in-depth research reports every year. The equity group acts as

a bridge for institutional investors and corporate clients with the markets. ICICI Securities is

the first domestic Investment Bank to organize theme based conferences in New York,

Shanghai, Singapore & Hong Kong.

2. Private Wealth management

The Wealth Management Group is a team of specialists who offer specific advisory services

to meet both personal and business wealth requirements of HNIs. The team creates

customized strategies to meet Customer's investment goals of wealth accumulation, wealth

preservation and liquidity. In addition to mutual funds, fixed deposits and other traditional

products, we also offer alternate investment avenues of Private Equity, Structured /

Customized products for investors with specific views on the markets and Portfolio

Protection Strategies for large investors.

3. Retail

ICICI Securities empowers over 2 million Indians to seamlessly access the capital market

with ICICIdirect.com, an award winning and pioneering online broking platform. The

platform not only offers convenient ways to invest in Equity, Derivatives, Currency Futures,

Mutual Funds but also other services Fixed Deposits, Loans, Tax Services, New Pension

Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use

platform to invest in equity and various other financial products using its unique 3-in-1

account, which integrates customer’s saving, trading, and demat accounts. Apart from

convenience, ICICIdirect.com also offers access to comprehensive research information,

stock picks, and mutual fund recommendations among other offerings. Tailored services and

trading strategies are available to different types of customers; long term investors, day

traders, high-volume traders, and derivatives traders to name some. ICICIdirect.com uses the

most advanced commercially available 128-bit encryption technology enabled Secure Socket

Layer (SSL), to ensure that the information transmitted between the client and

ICICIdirect.com across the internet is safe and cannot be accessed by any third party.

ICICIdirect.com is the first broker in India to introduce `Digitally Signed Contract Note' to its

28

customers. As a result, the process of generating contract notes has been automated and the

same would be instantly available to its customers in a safe and secure manner through the

website.

29

1.7 ICICI Direct

ICICI direct is an online trading and investment platform on ICICI Securities, the largest

stock broker firm in India providing a wide range of investment options to the retail and

institutional customers. ICICI Securities is part of ICICI Group, India's top financial service

provider offering banking and other financial services.

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

ICICIDirect.com is the flagship website of I-Sec. This website was the first online trading

platform lunched in India to provide browser based equity, commodity and currency trading;

all under one login.

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

countries. It is one website, which provides options to invest in over 20 financial products

including Equity, Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits,

Loans, Tax Services, New Pension Systems and Insurance.

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

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

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

The 3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and

ICICI Demat Account, is the best offering for retail investors in India as it provides easiest

way to invest in stock market and other financial instruments. The customers can visit any of

the over 1500 ICICI Bank branches to get help on financial products which are sold through

ICICI direct.

ICICI Direct's Trading Platforms30

ICICI Direct offers 2 trading platforms to its customers:

Share Trading Account (Website Based Trading)

Website based online Share Trading Account by ICICI Direct is primarily for buying and

selling of stocks at BSE and NSE.

The ICICI Direct website allows Cash Trading, Margin Trading, Margin PLUS Trading, Spot

Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund Investment etc.

ICICIDirect.com website is the primary Investment vehicle of ICICI Limited.

Trade Racer (Trading Terminal)

Trade Racer is a power packed Trading platform, which provides an investor with Live

streaming quotes & Research Calls, integrated fund transfer system along with multiple

watch list facility. Investor can also do technical analysis with the help advance charting

tools. Single Order entry page for Equities and Derivatives, Technical Analysis, Integrated

Fund Transfer System, Customized Interface, Intra-day and EOD Charts and Shortcut keys

for faster access to markets are some of the key features of Trade Racer Terminal.

Products & Services

31

Equity

ICICIdirect.com offers various options while trading in shares.

Cash Trading: This is a delivery based trading system, which is generally done with the

intention of taking delivery of shares or monies.

Margin Product : Investor can also do an intra-settlement trading up to 3 to 4 times available

funds, wherein Investor take long buy/ short sell positions in stocks with the intention of

squaring off the position within the same day settlement cycle.

Margin PLUS Product : Through Margin PLUS Investor can do an intra-settlement trading up

to 25 times your available funds, wherein Investor take long buy/ short sell positions in stocks

with the intention of squaring off the position within the same day settlement cycle. Margin

PLUS will give a much higher leverage in Investor account against his limits.

Cal lN Trade: Cal lN Trade allows Investor to call on a local number in your city & trade on

the telephone through our Customer Service Executives. This facility is currently available in

over 11 major states across India.

Trading on NSE/BSE: Through ICICI direct.com, can trade on NSE as well as BSE.

Market Order: Investor could trade by placing market orders during market hours that allows

to trade at the best obtainable price in the market at the time of execution of the order.

Limit Order: Allows placing a buy/sell order at a price defined by Investor. The execution

can happen at a price more favourable than the price, which is defined by Investor, limit

orders can be placed by Investor during holidays & non-market hours too.

Derivatives

32

Futures

Through ICICIdirect.com, investor can now trade in index and stock futures on the NSE. In

futures trading, investor takes buy/sell positions in index or stock contracts having a longer

contract period of up to 3 months.

Trading in FUTURES is simple! If, during the course of the contract life, the price moves in

investor favour (i.e. rises in case investor has a buy position or falls in case investor has a sell

position), make a profit.

Presently only selected stocks, which meet the criteria on liquidity and volume, have been

enabled for futures trading.

Calculate Index and Know your Margin are tools to help you in calculating investor margin

requirements and the index & stock price movements. The Centre for Financial Learning is a

comprehensive guide on futures and options trading.

OPTIONS

An option is a contract, which gives the buyer the right to buy or sell shares at a specific

price, on or before a specific date. For this, the buyer has to pay to the seller some money,

which is called premium. There is no obligation on the buyer to complete the transaction if

the price is not favourable to him.

To take the buy/sell position on index/stock options, investor has to place certain percentage

of order value as margin. With options trading, investor can leverage on his trading limit by

taking buy/sell positions much more than what he could has taken in cash segment.

The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying

Asset at the specified strike price by paying a premium whereas the Seller of the Call has the

obligation of selling the Underlying Asset at the specified Strike price.

The Buyer of a Put Option has the Right but not the Obligation to Sell the Underlying Asset

at the specified strike price by paying a premium whereas the Seller of the Put has the

obligation of buying the Underlying Asset at the specified Strike price.

33

By paying lesser amount of premium, investor can create positions under OPTIONS and take

advantage of more trading opportunities.

Currency Derivatives

ICICI Direct offers a simple and convenient way to trade and hedge currency risk in four pair

of Currencies- Dollar, Euro, Pound and Japanese Yen against Indian Rupee.

By offering the choice of trading in different asset class of Currencies ICICI Direct offers the

opportunity to diversify investor portfolio.

The benefits of choosing ICICI Direct for your Currency Trading are:

Convenience - Provides a well-diversified set platform for online trading with competitive

brokerage under a single sign-on and completely paper-less investing experience

Expertise - Investor can access Daily Research Reports as well as Fundamental & Technical

Reports and Advisory.

Flexibility – Investor can select the Currency Pair USD/INR, EUR/INR, GBP/INR and

JPY/INR in which he wish to trade

Few Advantages of this market are

Trading hours of 09:00 am to 05:00 pm provide more trading opportunities

Trade in prominent currencies like US Dollar, EURO, Pound, Yen against Indian Rupee

Real time and Transparent Currency Rates in comparison to OTC Rates.

No Counterparty Default risk due to settlement guarantee by regulated clearing house.

Low Taxation ( No STT and CTT)

Daily Cash Settlement in INR via MTM (Mark to Market)

Currency Futures - An Assets Class

34

Mutual Fund

ICICI Direct offers a simple and convenient way to invest and manage personal finance with

over 2000 funds approximately.

The benefits of choosing ICICI Direct for investment in mutual funds are:

Convenience - Provides a well-diversified set of investment products under a single sign-on

and completely paper-less investing experience.

Expertise - Investor can access some of the researched funds selected based on rigorous

criterion.

Flexibility - Investor may select the fund that best suits his need

Exchange Traded Funds

Exchange Traded Funds or ETFs are securities that are traded, like individual stocks, on an

exchange. Unlike regular open-end mutual funds, ETFs can be bought and sold throughout

the trading day like any stock.

Most ETFs charge lower annual expenses than many mutual funds. As with stocks, one must

pay a brokerage to buy and sell ETF units.

ICICI direct advantage:

The benefits of choosing ICICI direct for ETF investment are:

Invest in a paperless manner

No need to cut cheques

Get instant confirmation & Calculate capital gains at click of a button

Check portfolio for realized and unrealized profit/loss

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Life Insurance

Wealth insurance ensures that investor receives a lump sum amount of money at

the maturity of the Policy. In the unfortunate event of death during the term of the

policy, investor family receives lump sum amount, called the Sum Assured. Thus

it combines the benefits of protection and saving in a single instrument. 

IN ULIP POLICIES, THE INVESTMENT RISK IN THE INVESTMENT

PORTFOLIO IS BORNE BY THE POLICY HOLDER 

Conditions Apply: Guaranteed benefits are available only if all premiums are paid

as per the premium payment term and the policy is in-force till the completion of

entire policy term.

General Insurance

General Insurance products cover Health, Home, Motor and Travel, and help protect financial

health unforeseen events strike close to home. ICICI Lombard is the leading private general

insurance company and has one of the best products.

Partnership with ICICI Lombard enables to bring the entire range of insurance offerings

personal and professional needs, with minimal paperwork and at the comfort of home or

office. Select products can be entirely bought online on ICICIdirect.com with instant policy

issuance.

Fixed Deposits & Bonds

Corporate Fixed Deposits:- ICICI Direct offers a range of Corporate Fixed Deposits varying

in tenures, interest rates & institutions to suit investment needs. The deposit schemes have

been specially chosen from high-safety options to ensure that customers enjoy the twin

benefits of returns and protection.

Why opt for Corporate Fixed Deposits?

If risk appetite is low, fixed deposits are perfect. Since most of the instruments are

rated, corporate fixed deposits have a very high safety level.

Attractive returns at interest rates higher than bank’s Fixed Deposits.

36

Higher Interest rates for senior citizens.

High liquidity; most of these issuers offer 75% of the investment amount as loan @

2% over the interest rate on the deposit, as well as a pre-mature withdrawal Option.

Potential to earn compounding interest on money by reinvesting the principal amount

along with the interest earned.

Flexible tenure - there are various tenures ranging from 1 to 7 years.

Can choose interest frequency; most issuers offer monthly, quarterly, bi annual and

annual cumulative deposits.

Get direct ECS credit facility for interest payments or advance interest warrants for

the year issued by most issuers.

Bonds:-

Bond refers to a security issued by a company, financial institution or government, which

offers regular or fixed payment of interest in return on the amount, borrowed money for a

certain period.

Thus by purchasing a bond, investor loans money for a fixed period at a predetermined

interest rate. While the interest is paid to the bond holder at regular intervals, the principal

amount is repaid later, known as the maturity date. While both bonds and stocks are

securities, the principle difference between the two is that bond holders are lenders, while

stockholders are the owners of the organization. Another difference is that bonds usually have

a defined term, or maturity, after which the bond is redeemed, whereas stocks may be

outstanding indefinitely.

Customer also has the option of recurring interest along with Principal i.e. Cumulative

Interest. Thus a bond is like a loan: the issuer is the borrower (debtor), the holder is the lender

(creditor), and the coupon is the interest. Bonds provide the borrower with external funds to

finance long-term investments, or, in the case of government bonds, to finance current

expenditure. Bonds must be repaid at fixed intervals over a period.

37

E-Locker

ICICI direct.com's e-Locker helps with the convenience and flexibility to store and retrieve

important documents when need them. Can store scanned copies of Passport, PAN,

Agreements or even medical reports securely under your ICICI direct account.

eLocker helps eliminate to carry copies of important documents either as a physical photo

copy or in storage devices like Compact Disks, USB token etc.

With eLocker, can store documents in one central secure location and know that documents

are just a few clicks away.

Key Benefits:

Secure and Accessible - eLocker ensures that documents are secure and accessible only via a

secure login.

Anywhere, anytime access – eLocker is available from anywhere, via an Internet connection

under ICICI direct account login.

Durability and Longevity - Storage of documents in CD's or other portable media is prone to

handling them with care, eLocker lets store documents online, which ensures durability and

longevity.

No storage or retrieval hassles - Since documents are stored in a digital format under ICICI

direct account, the account is available to you wherever you go.

Trade Racer

Trade Racer is a trading platform, which provides Live streaming quotes & Research Calls,

integrated fund transfer system along with multiple watch list facility. Power-packed with

new features, Trade Racer gives the power to identify market opportunities while enjoying

the attractive new look and feel of the trading terminal.

National Pension System (NPS)

Pension Fund Regulatory and Development Authority (PFRDA) was established by the

Government of India on August 23, 2003 to promote old age income security by establishing,

38

developing and regulating pension funds, to protect the interests of subscribers to schemes of

pension funds and for matters connected therewith or incidental thereto.

The NPS is a new voluntary contributory pension scheme introduced by the Central

Government . Under the National Pension System , individuals can open a personal

retirement account and can accumulate a pension corpus during their work life to meet

financial needs post retirement. These contributions would grow and accumulate over the

years, depending on the returns earned on the investment made. When the person retires, he

will be able to use these savings to take care of the needs and expenses of his family during

old age. The subscribers may use the accumulated pension wealth under the scheme to

purchase a life annuity from a life insurance company. Alternatively, depending on the age of

the subscriber, a part of the wealth may be withdrawn as lump-sum.

ICICI Securities Limited (I-Sec) has obtained the Point of Presence (POP) Registration

Certificate from PFRDA to offer NPS accounts. Any individual customer of icicidirect.com

desiring to open an NPS account t can do so by clicking on "Subscribe NPS" and fulfilling

the prerequisite process.

SEBI regulations require that at least two thirds of the directors of trustee company or board

of trustees must be independent i.e. they should not be associated with the sponsors. In

addition, 50 per cent of the directors of AMC must be independent. All Mutual Funds are

required to be registered with SEBI before they launch any scheme

39

1.8 MUTUAL FUND

A mutual fund is a financial intermediary that pools the savings of investors for collective

investment in a diversified portfolio of securities. A fund is “mutual” as all of its returns,

minus its expenses, are shared by the fund’s investors. Investors invest money and get the

units as per the unit value, which we called as NAV (net assets value). Mutual fund is the

most suitable investment for the common person as it offers an opportunity to invest in

diversified portfolio management, good research team, professionally managed Indian stock,

as well as the foreign market.

History of Mutual Funds in India and role of SEBI

Unit Trust of India was the first Mutual Fund set up in India in the year 1963. In early 1990s,

Government allowed public sector banks and institutions to set up Mutual Funds. In the year

1992, Securities and exchange Board of India (SEBI) Act was passed. The objectives of SEBI

are - to protect the interest of investors in securities, to promote the development of, and to

regulate the securities market.

As far as Mutual Funds are concerned, SEBI formulates policies and regulates the Mutual

Funds to protect the interest of the investors. SEBI notified regulations for the Mutual Funds

in 1993. Thereafter, Mutual Funds sponsored by private sector entities were allowed to enter

the capital market. The regulations were fully revised in 1996 and have been amended

thereafter from time to time. SEBI has also issued guidelines to the Mutual Funds from time

to time to protect the interests of investors.

40

How is a Mutual Fund set up?

A Mutual Fund is set up in the form of a trust, which has a sponsor, trustees, and asset

management company (AMC) and custodian. The trust is established by a sponsor or more

than one sponsor who is like a promoter of a company. The trustees of the Mutual Fund hold

its property for the benefit of the unit holders. Asset Management Company (AMC) approved

by SEBI manages the funds by making investments in various types of securities. Custodian,

who is registered with SEBI, holds the securities of various schemes of the fund in its

custody. The trustees are vested with the general power of superintendence and direction over

AMC. They monitor the performance and compliance of SEBI regulations by the Mutual

Fund.

ADVANTAGES OF MUTUAL FUNDS

Mutual funds have designed to provide maximum benefits to investors, and fund manager

have research team to achieve schemes objective. Assets Management Company has different

type of sector funds, which need to proper planning for strategic investment and to achieve

the market return.

Portfolio Diversification

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

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

Professional Management

Fund manager undergoes through various research works and has better investment

management skills, which ensure higher returns to the investor than what he can manage on

his own.

Less Risk

Investors acquire a diversified portfolio of securities even with a small investment in a

Mutual Fund. The risk in a diversified portfolio is lesser than investing in merely 2 or 3

securities.

41

Low Transaction Costs

Due to the economies of scale (benefits of larger volumes), mutual funds pay lesser

transaction costs. These benefits are passed on to the investors.

Liquidity

An investor may not be able to sell some of the shares held by him very easily and quickly,

whereas units of a mutual fund are far more liquid.

Choice of Schemes

Mutual funds provide investors with various schemes with different investment objectives.

Investors have the option of investing in a scheme having a correlation between its

investment objectives and their own financial goals. These schemes further have different

plans/options

Transparency

Funds provide investors with updated information pertaining to the markets and the schemes.

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

Flexibility

Investors also benefit from the convenience and flexibility offered by Mutual Funds.

Investors can switch their holdings from a debt scheme to an equity scheme and vice-versa.

Option of systematic (at regular intervals) investment and withdrawal is also offered to the

investors in most open-end schemes.

Safety

Mutual Fund industry is part of a well-regulated investment environment where the interests

of the investors are protected by the regulator. All funds are registered with SEBI and

complete transparency is forced.

42

DISADVANTAGES OF MUTUAL FUNDS

The mutual fund not just advantage of investor but also has disadvantages for the funds. The

fund manager not always made profits but might creates loss for not properly managed. The

fund have own strategy for investment to hold, to sell, to purchase unit at particular time.

Costs Control Not in the Hands of an Investor

Investor has to pay investment management fees and fund distribution costs as a percentage

of the value of his investments (as long as he holds the units), irrespective of the performance

of the fund

No Customized Portfolios

The portfolio of securities in which a fund invests is a decision taken by the fund manager.

Investors have no right to interfere in the decision making process of a fund manager, which

some investors find as a constraint in achieving their financial objectives.

Difficulty in Selecting a Suitable Fund Scheme

Many investors find it difficult to select one option from the plethora of funds/schemes/plans

available. For this, they may have to take advice from financial planners in order to invest in

the right fund to achieve their objectives.

Functional Classification of Mutual Funds:-

Open-ended schemes : In case of open-ended schemes, the mutual fund continuously

offers to sell and repurchase its units at net asset value or NAV-related prices. Unlike

close-ended schemes, open-ended ones do not have to be listed on the stock exchange

and can offer repurchase soon after allotment. Investors can enter and exit the scheme

any time during the life of the fund. There is no fixed redemption period in open-

ended schemes, which can be terminated whenever the need arises. The fund offers a

redemption price at which the holder can sell units to the fund and exit. Besides, an

investor can enter the fund again by buying units from the fund at its offer price. Such

funds announce sale and repurchase prices from time-to-time. The key feature of

open-ended funds is liquidity. They increase liquidity of the investors as the units can

43

be continuously bought and sold. The investors can develop their income or saving

plan due to free entry and exit frame of funds. Open-ended schemes usually come as a

family of schemes, which enable the investors to switch over from one scheme to

another of same family.

Close-ended schemes :

Close-ended schemes have a fixed corpus and a stipulated maturity period ranging

between 2 to 5 years. Investors can invest in the scheme when it is launched. The

scheme remains open for a period not exceeding 45 days. Investors in close-ended

schemes can buy units only from the market, once initial subscriptions are over and

thereafter the units are listed on the stock exchanges where they dm be bought and

sold. The fund does not interact with investors until redemption except for paying

dividend/bonus. In order to provide an alternate exit route to the investors, some

close-ended funds give an option of selling back the units to the mutual fund through

periodic repurchase at NAV related prices. If an investor sells units directly to the

fund, he cannot enter the fund again, as units bought back by the fund cannot be

reissued. The close-ended scheme can be converted into an open-ended one. The units

can be rolled over by the passing of a resolution by a majority of the unit-holders.

Interval scheme :

Interval scheme combines the features of open-ended and close-ended schemes. They

are open for sale or redemption during predetermined intervals at NAV related prices.

44

CHAPTER--2

RESEARCH METHODOLOGY

Research methodology is a methodology for collecting all sorts of information & data

pertaining to the subject in question. The objective is to examine all the issues involved &

conduct situational analysis. The methodology includes the overall research design, sampling

procedure & fieldwork done & finally the analysis procedure. The methodology used in the

study consistent of sample survey using primary data. The primary data has been collected

with the help of questionnaire. The questionnaire has been drafted & presented by the ICICI

Securities, which was in online mode.

2.1 Research objective

To understand ICICI customer’s psyche towards mutual fund through conducting

survey (client meeting).

To find out what are the reasons that investors are not investing in mutual fund

through ICICI Direct.

In future investors would like to invest in mutual fund or not.

Customers of ICICI Securities are comfortable with online payment or not.

How frequent customers do online payment (monthly, quarterly, half yearly).

Customers are happy to carry on with ICICI Securities services in future or not.

Make the report on investor’s attitude in regards of Mutual Fund.

To find the potential customers of ICICI Securities in future.

2.2 Responsibilities assigned by the project mentor

I have to meet ICICI Securities clients and have to give demo presentation on the

benefits of Mutual Funds and its online transaction.

I have to show mutual fund video and ICICI Direct site demo to customers.

I was responsible to solve their queries about mutual fund.

If customers want to know about online portal and online trading I have to give them

site demo.

I have to make customers fill up one online feedback form.

I had to give clients mutual funds simplified brochure/ booklet.

Work done is shown below

45

Sample Size:

Sample of 80 customers of ICICI Securities was taken into study and their data was collected.

Sampling Technique:

Study the Project, a Simple Random Sampling technique is used

Data Collection:

Collection of data (primary) is done by:

Questionnaire

Face to face interaction

Data Analysis:

After data collection, I am able to analyze customer views, perception and opinions related to

mutual fund and from this, ICICI Securities will come to know the customers’ requirements.

Data Interpretation:

Interpretation of data is done by using statistical tools like Pie diagrams and using

quantitative techniques (by using these techniques) accurate information is obtained.

Classification & tabulation of data:

The data thus collected were classified according to the categories, counting sheets & the

summary tables were prepared. The resultant tables were one dimensional, two-dimensional.

Statistical tools used for analysis:

Out of the total respondents, the respondents who responded logically were taken into

account while going into statistical details & analysis of data. The tools that have been used

for analyzing data & inference drawing are mainly statistical tools like percentage, averages,

etc.

As per questionnaire, I have find out different responses from different people. According to

their responses, I analyse the findings and draw certain remarks.

46

2.2 STATEMENT OF PROBLEM

The area of survey was huge.

Customer who had invested his money in stock market with the guidance of ICICI

Securities Senior relationship manager and devalued their wealth, were not ready to fill up

questionnaire.

ICICI Securities has not updated its database. Customers who have shifted to other cities or

even closed their account still I got their details to contact.

At initial stage of project, there was some technical problem in ICICI Securities site demo,

which was not working and I have visited same clients thrice.

I had to fix appointment first with customers but few were not ready to give their time to be

part of my project.

47

2.4 ANALYSIS AND OUTCOMES

TABLE-1.2- Report Analysis

ACTIVITY REPORTCOUNT OF CALLS ASSIGNED

CONTACTABLES NON CONTACTABLES

FEEDBACK RECEIVED

INTERESTED NON-INTERESTED

1731 762 444 107 40 67

COUNTS OF CALLS AS-SIGNEDCON-

TACTABLES

NON CON-TACTABLESFEEDBACK RECEIVED

INTERESTEDNOT INTERESTED

ACTIVITY REPORT

COUNTS OF CALLS ASSIGNED CONTACTABLES NON CONTACTABLESFEEDBACK RECEIVED INTERESTED NOT INTERESTED

Figure 1.3 – shows the data collected

48

CUSTOMER PROFILE

I HAVE TARGETED A NUMBER OF CUSTOMERS AND I FIND OUT THAT

THERE ARE A NUMBER OF CUSTOMERS WHO ARE NOT TRADERS.

SAMPLE OF 80 CUSTOMERS WAS TAKEN INTO STUDY AND THEIR DATA

WAS COLLECTED.

NO OF CUSTOMERS INVESTING IN INSURANCE: 20

NO OF CUSTOMERS INVESTING IN EQUITY: 31

NO OF CUSTOMER INVESTING IN CORPORATE DEPOSIT: 2

NO OF CUSTOMERS INVESTING IN PUBLIC PROVIDENT FUND,

DEBENTURE OR BONDS: 11

NO OF CUSTOMERS INVESTING IN MUTUAL FUNDS: 16

NO OF CUSTOMERS NOT INVESTING IN STOCK MARKET: 24

49

SIGNIFICANCE AND SCOPE

The geographical scope of the study is restricted to Ranchi only with sample size of

80 people.

All the analysis and suggestions are based on the analysis of the primary data, which I

have collected with the help of questionnaire.

A big boom has been witnessed in Mutual Fund Industry in recent times. A large

number of new players have entered the market and trying to gain market share in this

rapidly improving market.

The research was carried on in Ranchi. I had been sent at Ranchi Club Complex

branch of ICICI Securities Ltd. where I completed my project work.

50

CHAPTER – 3

LIMITATIONS OF THE STUDY

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

conclusion. Their responses might not be fully true.

This study is only limited to Ranchi, therefore the conclusion may not be universally

applicable.

Since the researcher is a student, he lacks professional approach.

51

CHAPTER - 4

FINDINGS

Most of the customers were not fully aware with mutual fund and its advantage.

Customers even who know about mutual fund, are not investing their money into it

because of lack of knowledge about mutual fund.

Customers prefer to invest in other alternatives mostly in equity.

In future, customers would like to invest in mutual fund if ICICI Securities create

awareness and provide right knowledge about mutual fund among customers.

Most of the customers were using online mode of payment frequently.

Almost every customer were agree to continue with ICICI Securities services.

There was communication gap with some customers.

Mostly customers update themselves about investment decision by their own or take

advice with family and friends.

52

CHAPTER -5

SUGGESTIONS AND RECOMMENDATION

Before making any investment financial advisors should first enquire about the risk

tolerance of the investors, their need, and time (how long they want to invest). By

considering these three things they can take the customers into consideration.

ICICI Securities should provide proper guidance to its customers about mutual fund

though seminars or other way of interaction.

There should be one department, which will call customer once in a month and notice

their problem or their complaint so there would not be any communication gap.

At the time of opening account, ICICI Securities can offer one tutorial class about

mutual fund or about other investment plans so there would not be any lack of

knowledge in customer mind.

ICICI Securities can send details about investment decision to its customers through

e-mail or SMS.

53

CHAPTER - 6

CONCLUSION

Running of successful Mutual Funds requires complete understanding the psyche of small

investors. This study has made an attempt to understand the financial behavior of ICICI

Securities customers. I observed that many of customers have fear of Mutual Fund. Many of

customers do not invest in mutual fund due to lack of awareness although they have money to

invest. Most of customers prefer to invest in equity. Investors should be made aware of the

benefits. Nobody will invest until and unless he is fully convinced. . It is very important to

make a relation with customers and maintain it so that the business can work smoothly and

properly . So, one should maintain a good relation with the customers

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CHAPTER -7

QUESTIONNAIRE

Q. Have you invested in any of the following in the last 12 months?

Q. What is your preferred mode of investment?

Q. Have you invested in any of the following through ICICIdirect.com in the last 12 months?

Q. How does you /would you prefer to make your investments in Equity

Q. Before the demo, were you aware that you can invest in Mutual funds through ICICI

DIRECT?

Q. If yes, what are the reasons for not investing in Mutual Funds through ICICI direct.com?

Q. Which of the following online transactions have you done in the past?

Q. How often do you transact online in any of the above-mentioned transactions?

Q. Which medium of news information and analysis do you use to keep yourself informed on

investment products?

Q. How do you check the performance of all/any of your investments?

Q. Would you consider switching your investment relationship to ICICIdirect.com?

Q. Which of the following site features did you find useful in the demo?

Q. How would you rate the presentation and demonstration by our representative?

55

REFERENCE

1. http://www.icicigroupcompanies.com

2. http://www.icicisecurities.com

3. http://www.assetmanagement.hsbc.com/in/mutual-funds/learning-

centre/investor-progrm/mutual_fund.html

4. http://www.mutualfundindia.com

5. http://www.moneycontrol.com

56

APPENDICS

57