Executive summary

This report analyses the customers perception on mutual funds and their
willingness to invest in it.
We did a research on the customers preference towards mutual funds. ICICI direct is one of
the largest mutual funds distributers in India. It is committed towards guiding investors to
create wealth. They have a range of innovative products and services. They guide the
customers through all stages of investment cycle.
ICICI Securities has taken an Initiative to create awareness about Mutual Funds to its
customers. The project is named Mutual Fund Simplified. The objective is to demonstrate
the benefit of mutual fund and investing in Mutual Fund through ICICIdirect.com and a
survey about Mutual Fund investments from existing customers of ICICI Securities
(Customers who have an ICICIdirect.com account).
The objective of our research was to find out the customers perception on mutual funds and
their willingness to invest in it.
Here we were trying to study the customers willingness with respect to the factors such as
gender, age group, occupation, etc.
Project duration was 8 weeks and the sample size was 60. The research location was central
Bangalore since it is near to my assigned office (Cunningham road branch ICICI direct).
The method used was questionnaire method which was filled online, thereby making the
process easier, faster and eco-friendly. The data was directly stored in google drive. This
made the data compilation and analysis very easy.
Once we got the data, we exported it to excel sheet and interpreted the data. Data
interpretation was basically in the form of pie charts and bar charts. From those charts, it was
very easy to make out the response towards each question.
The job to fix an appointment was really tough. Most of the customers refused to talk and
some were reluctant to meet.
Travelling was another issue because most of the addresses in the database available were
wrong or old. There were few customers with whom I did not meet because their office or
residence was in the outskirts of city.
Number of phone calls made in a day was dependent on the follow ups I used to have or
number of meeting on that particular day. On an average I used to call around 40 to 50
customers a day.

INTRODUCTION
Small drops of water make a big ocean on this concept mutual fund works. Small
investors can also invest in mutual fund and earn a fair rate of return with less risk
compare to shares. Mutual fund also provides the benefits of specialized services, expert
knowledge; tax benefits etc. investors do not spend all their income into various goods and
services. Certain amount they will save and out of saved amount they will invest certain
proportion in investment avenues. Today, various investment options like land, gold,
shares, debenture, bonds etc, are available for an investor.
So while choosing a best possible investment option, investor has to take carefully verify
all available options. Investor will be primary looking at an investment option which will
give maximum return with minimum risk. So Mutual fund is expected a better option for
the investor at present. Mutual fund is different from other in terms of risk, return,
liquidity, profitability, transparency etc.
This research helps in identifying the investors perception towards mutual funds debt
schemes and the factors that influence investors to invest in various debt schemes which
are managed by various fund managers of Asset Management Company. Along with that
an extra effort is put to evaluate the performance of various debt schemes using standard
deviation and NAV returns.

Mutual fund
Mutual fund is vehicle to mobilize funds from investors, to invest in different markets and
securities, in line with the investment objectives agreed upon, between the mutual fund
and the investors.

Mutual fund working process

The following figures explain the Mutual Fund Working Process

AMC

Saving

Investment

Trust
Unit
Unit holders

Returns

Registra

SEBI

Trus
Custodian

AMC

Fig.1.1: Mutual Fund Working Process

The mutual fund collects money directly or through brokers from investors. The money
is invested in various instruments depending on the objective of the scheme. The
income generated by selling securities or capital appreciation of these securities is
passed on to the investors in proportion to their investment in the scheme. The
investments are divided into units and the value of the units will be reflected in Net
Asset Value or NAV of the unit. NAV is the market value of the assets of the scheme
minus its liabilities. The NAV is the net asset value of the scheme divided by the
number of units outstanding on the valuation date. Mutual fund companies provide
daily net asset value of their schemes to their investors.

Structure of Mutual Fund

Unit Holders

Sponsor
Trustee

AMC

The Mutual Fund

Transfer Agent

Custodian

SE

Fig.1.2: Structure of Mutual fund

The structure consists of:
Sponsor
Sponsor is the person who acting alone or in combination with another body corporate
establishes a mutual fund. Sponsor must contribute at least 40% of the net worth of the
Investment managed and meet the eligibility criteria prescribed under the Securities and
Exchange Board of India (Mutual Fund) Regulations, 1996. The sponsor is not responsible
or liable for any loss or shortfall resulting from the operation of the Schemes beyond the
initial contribution made by it towards setting up of the Mutual Fund.

Trust

The Mutual Fund is constituted as a trust in accordance with the provisions of the Indian
Trusts Act, 1882 by the Sponsor. The trust deed is registered under the Indian Registration
Act, 1908.
Trustee
Trustee is usually a company (corporate body) or a Board of Trustees (body of
individuals). The main responsibility of the Trustee is to safeguard the interest of the unit
holders and ensure that the AMC functions in the interest of investors and in accordance
with the Securities and Exchange Board of India (Mutual Funds) Regulations, 1996, the
provisions of the Trust Deed and the Offer Documents of the respective Schemes. At least
2/3rd directors of the Trustee are independent directors who are not associated with the
Sponsor in any manner.
Asset Management Company (AMC)
The AMC is appointed by the Trustee as the Investment Manager of the Mutual Fund. The
AMC is required to be approved by the Securities and Exchange Board of India (SEBI) to
act as an asset management company of the Mutual Fund. At least 50% of the directors of
the AMC are independent directors who are not associated with the Sponsor in any
manner. The AMC must have a net worth of at least 10 cores at all times.
Custodian
The custodian has custody of the assets of the fund. As part of this role, the custodian
needs to accept and give delivery of securities for the purchase and sale transactions of the
various schemes of the fund. All custodians need to register with SEBI. The custodian is
appointed by the mutual fund. A custodian agreement is entered into between the trustees
and the custodian.

Registrar and Transfer Agent

The AMC if so authorized by the Trust Deed appoints the Registrar and Transfer Agent to the
Mutual Fund. The Registrar processes the application form, redemption requests and
dispatches account statements to the unit holders. The Registrar and Transfer agent also
handles communications with investors and updates investor records.

Auditors
Auditors are responsible for the audit of accounts. Accounts of the schemes need to be
maintained independent of the account of the AMC. The auditor appointed to audit the
scheme accounts needs to be different from the auditor of the AMC. While the scheme
auditor is appointed by the Trustees, the AMC auditor is appointed by the AMC.

Fund Accountants
The fund accountant performs the role of calculating the NAV, by collecting information
about the assets and liabilities of each scheme.

Distributors
Distributors have a key role in selling suitable types of units to their clients i.e. the investors
in the schemes. Distributors need to pass the prescribed certification test.

Collecting Bankers
The investors moneys go into the bank account of the scheme they have invested in. These
bank accounts are maintained with collection bankers who are appointed by the AMC.

Advantages of Mutual Fund for Investors:

Professional Management
Mutual funds offer investors the opportunity to earn an income or build their wealth through
professional management of their investible funds. There are several aspects to such
professional management viz. investing in line with the investment objective, investing based
on adequate research, and ensuring that prudent investment processes are followed.

Affordable Portfolio Diversification

Units of a scheme give investors exposure to range of securities held in the investment
portfolio of the scheme. Thus, even a small investment of Rs.5000 in mutual fund scheme can
give investors a diversified investment portfolio. With diversification, an investor ensures that

all the eggs are not in the same basket. Consequently, the investor is less likely to lose money
on all the investments at the same time. Thus, diversification helps reduce the risk in
investment. In order to achieve the same diversification as a mutual fund scheme, investors
will need to set apart several Lakhs of rupees. Instead, they can achieve the diversification
through an investment of a few thousand rupees in mutual fund scheme.

Economy of Scale
The pooling a large sums of money from so many investors makes it possible for the mutual
fund to engage professional managers to manage the investment. Individual investors with
small amounts to invest cannot, by themselves, afford to engage such professional
management. Large investment corpus leads to various other economies of scale. For
instance, costs related to investment research and office space get spread across investors.
Further, the higher transaction volume makes it possible to negotiate better terms with
brokers, bankers and other service providers

Liquidity
At times, investors in financial markets are stuck with a security for which they cannot find a
buyer-worse, at times they cannot find the company they invested in! Such investments,
whose value the investor cannot realise in the market, are technically called illiquid
investments and many result in losses for the investor. Investment in a mutual fund scheme
can recover the value of the moneys invested, from the mutual fund itself. Depending on the
structure of the mutual fund scheme, this would be possible, either at any time, or during
specific intervals, or only on closer of the scheme. Schemes, where the money can be
recovered from the mutual fund only on closure of the scheme, are listed in the stock
exchange. In such schemes, the investor can sell the units in the stock exchange to recover the
prevailing value of the investment.
Tax Deferral
Mutual funds are not liable to pay tax on the income they earn. If the same income were to be
earned by the investor directly, then tax may have to be paid in the same financial year.
Mutual funds offer options, whereby the investor can let the fund grow in the scheme for
several years. By selecting such options, it is possible for the investor to defer the tax

liability. This helps investors to legally build their wealth faster than would have been the
case, if they were to pay tax on the income each year.
Tax Benefits
Specific schemes of mutual funds (Equity Linked Saving Schemes) give investors the benefit
of deduction of the amount invested, from their income that is liable to tax. This reduces their
taxable income, and therefore the tax liability. Dividends received from mutual fund schemes
are tax-free in the hands of the investors. However, dividends from certain categories of
schemes are subject to dividend distribution tax, which is paid by the scheme before the
dividend is distributed to the investor.

Long term capital gains arising out of sale of debt and liquid funds are subject to long term
capital gains tax, which may be taxed at a different( and often lower) rate of tax.

Convenient Options
The options offered under a scheme allow investors to structure their investments in line with
their liquidity preference and tax position. There is also great transaction convenience like the
ability of withdraw only part of the money from the investment account, ability to invest
additional amounts to the account, setting up systematic transactions, etc.

Investment Comfort
Once an investment is made with a mutual fund, they make it convenient for the investor to
make further purchase with very little documentation. This simplifies subsequent investment
activity.

Regulatory Comfort
The regular, securities & Exchange Board of India (SEBI), has mandate strict checks and
balances in the structure of mutual funds and their activities. These are detailed in the
subsequent units. Mutual fund investors benefit from such protection.

Systematic Approach to Investments

Mutual funds also offer facilities that help investor invest amounts regularly through a
Systematic Investment Plan (SIP); or withdraw amounts regularly through a Systematic
Withdrawal Plan (SWP); or move moneys between different kinds of schemes through a
Systematic Transfer Plan (STP).
Types Of Mutual Fund

Open-ended
By
Structure

Closed -ended
Interval

Types of
Mutual fund

Equity Funds
By
Investment Objective

Debt Funds
Hybrid Funds

Fig. 1.3: Types of Mutual funds

Types of Mutual Fund Schemes in India

Wide variety of Mutual Fund Schemes exists to cater to the needs
such as financial position, risk tolerance and return expectations etc.
Thus mutual funds have a variety of flavours. There are over
hundreds of mutual funds scheme to choose from. It is easier to think
of mutual funds in categories, mentioned below.

Overview of existing schemes in mutual fund category: By

Structure
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.

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 sell
units during the liquidity window. SEBI Regulations ensure that at least
one of the two exit routes is provided to the investor.

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

Overview of existing schemes in mutual fund category: By Nature

Equity fund
These funds invest a maximum part of their corpus into equities holdings.
The structure of the fund may vary different for different schemes and
the fund managers outlook on different stocks. The Equity Funds are subclassified depending upon their investment objective, as follows:

Diversified Equity Funds

Mid-Cap Funds
Sector Specific Funds
Tax Savings Funds (ELSS)
Equity investments are meant for a longer time horizon, thus Equity
funds rank high on the risk- return matrix.

Debt funds
The objective of these Funds is to invest in debt papers. Government
authorities, private companies, banks and financial institutions are some
of the major issuers of debt papers. By investing in debt instruments,
these funds ensure low risk and provide stable income to the investors.
Debt Funds are further classified as:
Gilt Funds
Invest their corpus in securities issued by Government, popularly known
as Government of India debt papers. These Funds carry zero Default risk
but are associated with Interest Rate risk. These schemes are safer as
they invest in papers backed by Government.

Income Funds

Invest a major portion into various debt instruments such as bonds,

corporate debentures and Government securities.
Monthly Income Plans (MIPs)
Invest maximum of their total corpus in debt instruments while they take
minimum exposure in equities. It gets benefit of both equity and debt
market. These scheme ranks slightly high on the risk-return matrix when
compared with other debt schemes.

Short Term Plans (STPs)

Mean for investment horizon for three to six months. These funds
primarily invest in short term papers like Certificate of Deposits (CDs) and
Commercial Papers (CPs). Some portion of the corpus is also invested in
corporate debentures.

Liquid Funds
Liquid fund also known as Money Market Schemes, These funds provides
easy liquidity and preservation of capital. These schemes invest in shortterm instruments like Treasury Bills, inter-bank call money market, CPs
and CDs. These funds are meant for short-term cash management of
corporate houses and are meant for an investment horizon of 1day to 3
months. These schemes rank low on risk-return matrix and are
considered to be the safest amongst all categories of mutual funds.

Balanced funds
These are a mix of both equity and debt funds. They invest in both
equities and fixed income securities, which are in line with pre-defined
investment objective of the scheme. These schemes aim to provide
investors with the best of both the worlds. Equity part provides growth
and the debt part provides stability in returns. Further the mutual funds

can be broadly classified on the basis of investment parameter vis, by

investment objective and types of returns. Each category of funds is
backed by an investment philosophy, which is pre-defined in the
objectives of the fund. The investor can align his own investment needs
with the funds objective and invest accordingly.

Overview of existing schemes in mutual fund category: by

Investment Objective

Growth Schemes
Growth Schemes are also known as equity schemes. The aim of these
schemes is to provide capital appreciation over medium to long term.
These schemes normally invest a major part of their fund in equities and
are willing to bear short-term decline in value for possible future
appreciation.

Income Schemes
Income Schemes are also known as debt schemes. The aim of these
schemes is to provide regular and steady income to investors. These
schemes generally invest in fixed income securities such as bonds and
corporate debentures. Capital appreciation in such schemes may be
limited.

Balanced Schemes
Balanced Schemes aim to provide both growth and income by
periodically distributing a part of the income and capital gains they earn.
These schemes invest in both shares and fixed income securities, in the
proportion indicated in their offer documents (normally 50:50).

Money Market Schemes

Money Market Schemes aim to provide easy liquidity, preservation of
capital and moderate income. These schemes generally invest in safer,
short-term instruments, such as treasury bills, certificates of deposit,
commercial paper and inter-bank call money.

Other schemes:
Tax Saving Schemes
Tax-saving schemes offer tax rebates to the investors under tax laws
prescribed from time to time. Under Sec.88 of the Income Tax Act,
contributions made to any Equity Linked Savings Scheme (ELSS) are
eligible for rebate.

Index Schemes
Index schemes attempt to replicate the performance of a particular
index such as the BSE Sensex or the NSE 50. The portfolio of these
schemes will consist of only those stocks that constitute the index. The
percentage of each stock to the total holding will be identical to the
stocks index weight age. And hence, the returns from such schemes
would be more or less equivalent to those of the Index.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those
sectors or industries as specified in the offer documents. Examples Pharmaceuticals,

Software,

Fast Moving

Consumer

Goods

(FMCG),

Petroleum stocks, etc. The returns in these funds are dependent on the
performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds.

Investors

need

to

keep

watch

on

the

performance of

those

sectors/industries and must exit at an appropriate time.

Regulatory Framework
Securities and Exchange Board of India (SEBI): The Government of
India constituted Securities and Exchange Board of India, by an Act of
Parliament in 1992, the apex regulator of all entities that either raise
funds in the capital markets or invest in capital market securities such as
shares and debentures listed on stock exchanges. Mutual funds have
emerged as an important institutional investor in capital market securities.
Hence they come under the purview of SEBI. SEBI requires all mutual
funds to be registered with them. It issues guidelines for all mutual fund
operations including where they can invest, what investment limits and
restrictions must be complied with, how they should account for income
and expenses, how they should make disclosures of information to the
investors and generally act in the interest of investor protection.
To protect the interest of the investors, SEBI formulates policies and
regulates the mutual funds. MF either promoted by public or by private
sector entities including one promoted by foreign entities is governed by
these Regulations. SEBI approved Asset Management Company (AMC)
manages the funds by making investments in various types of securities.
Custodian, registered with SEBI, holds the securities of various schemes of
the fund in its custody. According to SEBI Regulations, two thirds of the
directors of Trustee Company or board of trustees must be independent.
Association of Mutual Funds in India (AMFI): With the increase in
mutual fund players in India, a need for mutual fund association in India
was generated to function

as a non-profit

organization. Association of

Mutual Funds in India (AMFI) was incorporated on 22nd August, 1995.

AMFI is an apex body of all Asset Management Companies (AMC) which
has been registered with SEBI. Till date all the AMCs are that have

launched mutual fund schemes are its member. It functions under the
supervision and guidelines of its Board of Directors.

Risk-Return Trade-Of
The most important relationship to understand is the risk-return
trade-off. Higher the risk greater the returns/loss and lower the risk
lesser the returns/loss. Hence it is up to investors, the investors to
decide how much risk they are willing to take. In order to does this
investors must first be aware of the different types of risks involved
with investment decision.

Risk / Return Trade - Off

Market
Risk

Liquidity
Risk

Political/
Government
Policy Risk
Interest Rate
Risk

Credit
Risk

Inflation
Risk

Fig.1.4: Risk / Return Trade off

Market Risk
Sometimes prices and yields of all securities rise and fall. Broad outside
influences affecting the market in general lead to this. This is true, may it

be big corporations or smaller mid-sized companies. This is known as

Market Risk. A Systematic Investment Plan (SIP) that works on the
concept of Rupee Cost Averaging (RCA) might help mitigate this risk.

Credit Risk
The debt servicing ability of a company through its cash flows determines
the Credit Risk faced by you. This credit risk is measured by independent
rating agencies like CRISIL who rate companies and their paper. AAAA
rating is considered the safest whereas a D rating is considered poor
credit quality. A well-diversified portfolio might help mitigate this risk.
Inflation Risk
Things you hear people talk about: Rs. 100 today is worth more than Rs.
100 tomorrow.

The roots cause Inflation. Inflation is the loss of

purchasing power over time. A lot of times people make conservative

investment decisions to protect their capital but end up with a sum of
money that can buy less than what the principal could at the time of the
investment. This happens when inflation grows faster than the return on
your investment.
Interest Rate Risk
In a free market economy interest rates are difficult if not impossible to
predict. Changes in interest rates affect the prices of bonds as well as
equities. If interest rates rise the prices of bonds fall and vice versa. Equity
might be negatively affected as well in a rising interest rate environment.
A well-diversified portfolio might help mitigate this risk.

Political/Government Policy Risk

Changes in government policy and political decision can change the

investment environment. They can create a favourable environment for
investment or vice versa.

Liquidity Risk
Liquidity risk arises when it becomes difficult to sell the securities that one
has purchased. Liquidity Risk can be partly mitigated by diversification,
staggering of maturities as well as internal risk controls that lean towards
purchase of liquid securities.

COMPANY PROFILE
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 UKs largest players in the financial services sectors. IPAMC
was incorporated in the 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 pre-eminence
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.
ICICI Prudential Asset Management Company 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. ICICI Prudential Asset Management
Companys 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.

Vision
To empower the investor with quality advice and superior service to help them take better
decision. We believe that ICICI SECURITIES growth depends on client satisfaction.

Mission

Continuous up gradation with changing technology while maintaining human values.

Respond to progressive globalization and achieving international standard.

Efficiency and effectiveness built on ethical practices.

To provide the best customer service and product innovation tuned to diverse needs of
clientele.

Broad objectives of the ICICI are:

1

To enable its clients to do a paperless online transactions ad investments services.

To enable its clients to maximize their returns and plan for their future.

To retain its position in the market in terms of services, turnover, expansion and joint
ventures.

Products
Equity
Trading in shares
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Derivatives
FUTURES
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Presently only selected stocks, which meet the criteria on liquidity and volume, have been
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Calculate Index and Know your Margin are tools to help you in calculating your margin
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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
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To take the buy/sell position on index/stock options, you have to place certain % of order
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The Buyer of a Call Option has the Right but not the Obligation to Purchase the Underlying
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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
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By paying lesser amount of premium, you can create positions under OPTIONS and take
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General Insurance products cover Health, Home, Motor and Travel, and help protect your
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Health Insurance (popularly known as Mediclaim) offers protection in case of unexpected

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Motor Insurance- A comprehensive package for your two-wheelers and four-wheelers,

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Access to over 2700 network garages across the country for cashless claims across
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Transfer your full benefits of No Claim Bonus when you shift your motor insurance
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Get EMI facility through credit card without any interest.

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International travel covers unexpected and emergency medical expenses incurred when a
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Home Insurance Our Home Insurance policy secures the structure as well as the
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Fixed Deposits and Bonds

Corporate Fixed Deposits
We offer a range of Corporate Fixed Deposits varying in tenures, interest rates & institutions
to suit your investment needs. The deposit schemes have been specially chosen from highsafety options to ensure that you enjoy the twin benefits of returns and protection.
Why opt for Corporate Fixed Deposits?

If your risk appetite is low, fixed deposits are perfect for you. Since most of the
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Attractive returns at interest rates higher than banks's Fixed Deposits.

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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 your money by reinvesting the principal

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

You can choose interest frequency; most issuers offer monthly, quarterly, bi annual
and annual cumulative deposits.

You 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 of time.

Thus by purchasing a bond, an investor loans money for a fixed period of time at a
predetermined interest rate. While the interest is paid to the bond holder at regular intervals,
the principal amount is repaid at a later date, 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 of time.

Loans
ICICI direct offers a wide variety of Loan Products from ICICI bank to suit your
requirements. We strive to provide best of our products and services to you at your doorstep.
You can choose any of our below mentioned loan products and provide us with your details
online. Our representative will get in touch with you for further processing.

Home Loans

The No. 1 Home Loans Provider in the country, ICICI Bank Home Loans offers some
unbeatable benefits to its customers- Doorstep Service, Simplified Documentation and
Guidance throughout the Process.

Car Loans

ICICI Bank is the most preferred financer for car loans in the country with a network of more
than 1000 channel partners in over 200 locations. Tie-ups with all leading automobile
manufacturers to ensure the best deals. Flexible schemes & quick processing.

Loan Against Securities(LAS)

Loans against Securities is an overdraft facility from ICICI Bank, given by way of a current
account against pledge of securities that you hold. Not only do you get to hold on to your
securities, but you are also able to generate funds without selling your hard-earned assets.

Currency Derivatives
ICICI Direct offers you a simple and convenient way to trade and hedge your currency risk in
four pair of Currencies- Dollar, Euro, Pound and Japanese Yen against Indian Rupee.
By offering you the choice of trading in different asset class of Currencies we offer you the
opportunity to diversify the 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 - You can access to our Daily Research Reports as well as Fundamental &
Technical Reports and Advisory.

Flexibility - You can select the Currency Pair USD/INR, EUR/INR, GBP/INR and
JPY/INR in which you wish to trade

Few Advantages of this market are

1

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)

Life Insurance Plans

Term Life insurance
Term Life Insurance plan ensures financial protection and stability to your family in case of
any unforeseen events. It offers adequate coverage at an affordable price. There is no maturity

value or survival benefit in a term plan. Term Insurance benefits can be offered through lump
sum payment or regular income stream or a combination of both.

Protection: A term life insurance helps in securing family's future in your absence. From
taking care of the daily expenses, to other, more significant expenses like professional
education for the children and their marriage, having a safety net helps.

Tax Benefits: Apart from the benefit of protection, term insurance plan also offers you tax
benefits under Sec 80C up to Rs.1,50,000 tax limits.
Iprotect
IcareII
Wealth plan
Wealth Plans ensure that you receive your invested amount at the time of maturity of the
Policy. In an unfortunate event during the term of the policy, your family also receives lump
sum amount, called the Sum Assured. Thus it combines the benefits of protection and saving
in a single instrument.

Regular savings: Insurance inculcates the habit of regular and disciplined savings, which is
the key to successful long term financial planning. Pay your premiums regularly and enjoy
the uninterrupted benefits of wealth insurance.

Protection: It provides the protective benefit of a life cover, which keeps your family secure,
always.

Tax benefits: Apart from protection and savings, wealth plans also offer tax benefits as per
prevailing tax laws

Guaranteed Wealth Protect

Wealth Builder II
Cash Advantage
Savings Suraksha

Retirement Plan
Retirement Plan ensures that you or your family members receive a regular pension amount
post a retirement date. You have the flexibility to choose the retirement date and the manner
in which you receive the pension.

Financial independence post retirement: Earlier, people could depend on their children to take
care of them post retirement. However, as a modern individual, you can maintain your
financial independence post retirement also

Inflation: Inflation is an important factor. Post retirement, you need a regular income to
ensure that your expenses can be met.
Easy Retirement
Immediate Annuity
Easy retirement SP

Mutual funds
Equity Funds
Equity schemes endeavor to provide potential for high growth and returns with a moderate
to high risk by investing in shares. Such schemes are either actively or passively (replicate
indices) managed, and are best suited for investors with a long term investment horizon.
ICICI Prudential Dynamic Plan
ICICI Prudential Dynamic Plan is an Open-ended Diversified Equity Fund that aims to make
the most of market changes. Given the dynamic nature of the markets, the fund has the ability
to attack by taking aggressive asset calls in equity and equity related securities. On the flip
side it may also adopt a defensive strategy by investing in debt, money market instruments
and derivatives as and when markets get overvalued.
Key Benefits

It could be an ideal product in a volatile environment as it has the agility, aimed at

capturing upside opportunities in the market across market capitalizations.

On the flip side, it has the ability to switch to cash; thus seeking to limit the
downside, in case stock markets get into an overvalued position.

ICICI Prudential Focused Bluechip Equity Fund

ICICI Prudential Focused Bluechip Equity Fund is an Open-ended equity scheme that aims
for growth from a focused and optimally diversified portfolio .It invests in equity and equity
related securities of companies belonging to the large cap domain.

Key Benefits

The fund seeks to create reasonable diversification across sectors

The fund has a long term focus with "buy and hold" approach

The large cap companies have proven track record, quality management and
good growth potential.

ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund is an Open-ended Diversified
Equity Fund, which aims to invest stocks available at a discount to
their intrinsic value, through a process of Discovery. The process
involves identifying companies that are well managed, fundamentally
strong, and are available at a price, which can be termed as a bargain.
Key Benefits

It follows a value strategy of bargain hunting for intrinsically good stocks

As the potential value of the stocks in which the fund invests has not yet been
unlocked, the probability of growth is much higher.

ICICI Prudential Value Discovery Fund

ICICI Prudential Value Discovery Fund is an Open-ended Diversified Equity Fund, which
aims to invest stocks available at a discount to their intrinsic value, through a process of
Discovery. The process involves identifying companies that are well managed,
fundamentally strong, and are available at a price, which can be termed as a bargain.

Key Benefits

It follows a value strategy of bargain hunting for intrinsically good stocks

As the potential value of the stocks in which the fund invests has not yet been
unlocked, the probability of growth is much higher.

ICICI Prudential Infrastructure Fund

ICICI Prudential Infrastructure Fund is an open-ended equity fund, focused on capturing the
opportunity presented by the long-term growth and development potential of the Indian
Infrastructure Sector. The Fund focuses its investments on the core infrastructure sector and
allied sectors that directly feed off its growth.

Key Benefits

The potential for long term growth makes this fund an attractive investment
opportunity.

There is lower concentration risk as it is a thematic fund.

Debt Funds
Debt Funds primarily invests in bonds and other debt instruments, and will suit investors
who want to optimize current income assuming low to moderate levels of risk.
ICICI Prudential Flexible Income Plan
The debt market offers its own risk-to-return tradeoff, which is triggered by changes in
interest rates and the impact they have on debt securities. To a fund manager, however, the
changes in the yield curve not only offers risk, but also opportunities to benefit by actively
managing these risks and making use of an opening to increase returns.
ICICI Prudential Flexible Income Plan, an open-ended income fund, seeks to actively manage
such risks as a conscious investment strategy by allowing the fund manager to switch the
allocation from a 100% debt stance to a 100% cash stance, which provides the flexibility to
implement yield curve strategies, or manage interest rate volatility better.
Key Benefits

A portfolio which strategically deploys funds in the debt markets to take advantage
of interest rate risks.

Facilitates participation in markets that are large and institution-dominated.

Provides the potential to earn total return from both interest and capital gains, with
the attendant risks of capital loss as well.

ICICI Prudential Savings Fund

There are many factors that determine the rate of interest of securities, and constant changes
in these underlying fundamentals, cause fluctuations in the interest rates, which has a direct
impact on the value of our portfolio. An increase in rates reduces the value of our holdings
and vice-versa.
If interest rates on instruments in the portfolio were to keep getting reset according to the
prevailing market rates, then, we may be able to focus on the interest income without
worrying too much about its impact on the portfolio.
ICICI Prudential Floating Rate Plan, an open-ended income fund, focuses primarily on
dynamic interest rates, and takes rapid action when necessary to minimize the impact of these
fluctuations on your portfolio.
Key Benefits

A portfolio that focuses on accrual income, which is derived from floating rate
instruments.

Reduced interest rate risk of longer term instruments.

ICICI Prudential Ultra Short Term Plan

ICICI Prudential Ultra Short Term Plan, an open-ended income fund, is designed for such
short-term requirement, as it enables deploying of funds for shorter periods of time, from 3 to
6 months, to generate regular income while cautiously monitoring the rate of interest.
Key Benefits

Investors seeking safety and liquidity, while earning stable and competitive returns,
in a scenario where it is difficult to forecast the future interest rate outlook.

Conservative investors who may want to outplay the yield in short-term bank
deposits in a tax-efficient manner.

ICICI Prudential Liquid Plan

ICICI Prudential Liquid Plan, an open-ended liquid income fund, offers a potentially
rewarding parking facility for short-term, idle cash. It provides the flexibility of withdrawing
cash as and when required, and proves to be an investment through its earnings, while it is
parked in the fund.
Key Benefits

It enables efficient and fruitful deployment of idle cash.

This plan ensures a high level of liquidity and flexibility to access cash invested at a
days notice.

It offers a low risk option to invest in mutual funds.

Balance/Hybrid funds
Hybrid Schemes or balanced schemes bridge the gap between equity and debt schemes.
This category is characterized by a portfolio that is made up of a mix of equity stocks
and bonds and will suit investors looking for debt plus returns with higher levels of risk
than fixed income schemes.
ICICI Prudential Child Care Plan (Study)
ICICI Prudential Child Care Plan, an open-ended fund, is an investment instrument specially
designed to help you give your child a head start in life by leveraging the opportunities and
dynamism of equity and debt markets. It offers two options

Gift Option - (Suitable if your child is in age group of 1-13 years.)

Study Option - (Suitable if your child is in age group of 13-17 years.)

Key Benefits

Personal Accident Cover (for resident applicants) - Till your child attains the age of
18 or till units are redeemed (whichever is earlier), you as his / her parent / legal
guardian will be eligible for a Personal Accident Cover equivalent to 10 times the
value of the Units you have purchased (value at purchase price) subject to a
maximum of limit of Rs. 5 lakh.

ICICI Prudential MIP 25

ICICI Prudential Income Multiplier Fund, an open-ended debt fund that invests upto 30% in
equity, adds a pinch of equity to your debt portfolio, so that you can benefit from the
dynamism of equity markets, with peace of mind.

Key Benefits

A core portfolio invested in debt provides stability to the investment.

Provides limited exposure to equity that has the potential to spike up the returns
generated from the basic debt portfolio.

ICICI Prudential Monthly Income Plan

ICICI Prudential Monthly Income Plan (MIP), (Monthly Income is not assured and is subject
to availability of distributable surplus), an open-ended fund, is designed to be a low risk
income-generating product for an investor who likes to earn the short term debt market return
enhanced by a small equity component that does not significantly add to the risk of the
portfolio.

Key Benefits

A core portfolio invested in debt provides stability to the investment.

Limited exposure to equity has the potential to spike up the returns generated from
the basic debt portfolio & provides an opportunity to earn better risk-adjusted
returns

The fund has the track record of uninterrupted monthly dividends since inception.

ICICI Prudential Balanced Fund

ICICI Prudential Balanced Fund, an open-ended balanced fund, takes care of the asset
allocation by constantly investigating market outlook and performance and accordingly by
increasing / decreasing equity exposure based on the market outlook and using a core debt
portfolio to do the rebalancing.

Key Benefits

Provides the twin benefits of growth from equity markets and steady income from
debt markets.

Lower volatility of returns and lower risk through diversification.

Competitors

Market share
Mutual Fund Industry synopsis

In May 2015, assets under management (AUM) grew 19% year on year to
Rs.1203547 crore with share of equity oriented funds at 30% from 21% in May
2014. Total net inflows in mutual funds were muted at Rs.243 crore in May
2015 .

Inflows into equity scheme continues to be strong at Rs.9850 crore during May
2015. Income funds received Rs.4205 crore of net inflows during May 2015.
However, outflow to the tune of Rs.15657 crore from money market funds
resulted in to muted total net inflows.

Balance sheet And Profit and Loss account (for the year ended March 31,
2015)
Balance Sheet

Profit And Loss Account

Financial Ratios

Cash Flow Statement

Functional Areas
ICICI Securities Institutional

Corporate Finance
Equity capital market
Mergers and Acquisitions
Private equity

ICICI Securities - Private Wealth Management

ICICI Securities Ltd is an integrated securities firm that specializes in offering a varied
bouquet of customized services to people such as yourself. Their services range from
investment banking & private wealth management services to institutional broking, retail
broking and financial products distribution catering to a hugely diverse customer base. Their
services are patronized by corporates, financial institutions as well as successful high networth individuals & other retail investors alike. Their objective has always been to Create
Informed Access to the Wealth of the Nation.
At ICICI Securities Private Wealth Management, they base their services on a simple yet
powerful philosophy. They allow people to define their financial space with all the updated
market information at their fingertips, a diverse bouquet of products to choose from, the best
in class services, and the essential ingredients for a well-balanced wealth management
strategy, People will have a comprehensive wealth management platform at their disposal.
Their out-of-the-box approach and the opportunity to draw from their experience and
expertise will ensure that that the interests are well looked after.
ICICI Securities Retail
ICICI Securities empowers over 3.5 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.

Technology
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
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.

Selection Process
At ICICI, the selection process aims at getting applicants who are likely to succeed at
various roles in the organization. The endeavor is to select people who have a high service
orientation, are passionate about their career goals, and who display integrity and ethics in
all engagements.
Depending on the level of recruitment, the selection process
consists of following combinations:

Aptitude Tests

Group Discussion (This method is primarily used for campus selection process)

Psychometric Profiling

Personal Interview

Aptitude Tests:
Designed for entry level jobs, the aptitude test aims to assess basic aptitude of applicants
including Numerical, Verbal comprehension, logical reasoning and basic checking
abilities.
Group Discussion:
Based on case studies, the group discussions are mainly conducted to judge applicants on
their analytical thinking, approach to hypothetical building around business situations and
the ability to break down complex problems to arrive at simple solutions.
Psychometric Profiling:
A questionnaire - based psychometric tool that assesses the typical or preferred behavior
of individuals in work settings. Applicants are required to complete the questionnaire
before they appear for the interview. This tool gives us a better understanding of the
applicant and is not used for elimination of applicants.
Personal Interview:
All applicants are expected to go through the interview round, which is the final step in
the selection process.

Training and Development

Organizational Structure (Hierarchy)

Roles and Responsibilities

Chief Executive officer

Duty of CEO is to direct the partners and to frame the policies of the organization. The
CEO communicates with managing directors and regional heads once in a month over
conference call. CEOs responsibilities is to check whether the organization is moving in
the right directions as per the policies framed.
Managing Director
MD ensures whether the all categories of managers of ICICI SECURITIES are strictly
adhered to the policies framed by the CEO. Coming up with innovative strategies against
competitors is another responsibility of MD.
Executive Director
EDs responsibility is to ensure that the ICICI SECURITIS associates are following the
process implemented by the top authorities, check the performances of the individual and
decides the promotion of an individual.
Head of Production and Distribution
The level of contribution in terms of business by every region is reviewed by the head
and feedbacks are circulated across the regions.
Retail Head
Any new contest for the month is decided by the head of production. Asset allocation is
also decided by the retail head. They communicate with the entire regional managers.
Regional Head
They are the key person for the business generated for ICICI SECURITIES. Every
manager is allocated with different region to ensure that business is generated effectively
and efficiently. They communicate with cluster managers.
Cluster Manager
They are responsible to check whether the process implemented inside the organization
by the branch managers, senior relationship managers and relationship managers.

Branch Manager
Centre heads role is to guide the senior relationship managers and relationship managers
in all parameters. They work on target basis and communicates with their cluster heads
simultaneously.

Relationship Managers
Their role is to meet the clients and educate them on products they deal with and to
convince the clients to stick on with ICICI SECURITIES. Product selling is the major
tasks which are to be done on target basis.

Designations (Top team members) and Facilities

DIRECTORS
Chanda Kochhar, Chairperson
Uday Chitale
Vinod Kumar Dhall
Shilpa Kumar
Zarin Daruwala
Anup Bagchi, Managing Director & CEO
Ajay Saraf, Executive Director
EXECUTIVES
Subir Saha
Vaijayanti Naik
Raju Nanwani, Company Secretary
Prashant Mohta, Chief Financial Officer
AUDITORS
S. R. Batliboi & Co. LLP
Chartered Accountants
REGISTERED OFFICE
ICICI Centre, H.T. Parekh Marg
Churchgate, Mumbai 400 020
CORPORATE OFFICE
ICICI Securities Limited
Shree Sawan Knowledge Park
Plot No. D-507, T.T.C. Industrial Area
MIDC, Turbhe
Navi Mumbai 400 705

SWOT ANALYSIS

The SWOT analysis is an extremely useful tool for understanding and decision-making
for all sorts of situations in business and organizations. SWOT is an acronym for
Strengths, Weaknesses, Opportunities and Threats. SWOT analysis is perfect for business
planning, strategic planning, competitor evaluation, marketing, business and product
development and research reports. The SWOT analysis enables companies to identify the
positive and negative influencing factors inside and outside of a company or organization.

Strengths
-monetary assistance provided
-high profitability and revenue
Weaknesses
-future competition
-future profitability
-unknown
Opportunities
-venture capital
-new products and services
-new markets
-growing economy
Threats
-rising cost of raw materials
-price changes
-tax changes
-increasing costs
-financial capacity
-increasing rates of interest

INDUSTRY PROFILE

Mutual Fund Industry

History of Mutual Fund Industry
When three Boston securities executives pooled their money together in 1924 to create the
first Mutual Fund, they had no idea how popular Mutual Funds would become. The idea of
pooling money together for investing purposes started in Europe in the mid-1800s. The
first pooled fund in the U.S was created in 1893 for the faculty and staff of Harvard
University. On March 21st, 1924 the first official Mutual Fund was born. It was called the
Massachusetts Investor trust.
History of Indian Mutual Fund
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 and 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. 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.

First Phase 1964-87

Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. 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, 700 crores of assets under management.

Second Phase1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up 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
1987 followed by Can bank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June1989 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.
1992

Amount

Assets Under

Mobilization as % of Gross

Mobilized

Management

Domestic Saving

UTI
Public Sector

11,057
1,964

38,247
8,757

5.2%
0.9%

Total

13,021

47,004

6.1%

Third Phase 1993-2003 (Entry of Private Sector 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 erstwhile 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.

Fourth Phase Since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under 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, BOB and 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 consolidation
and growth. As at the end of September, 2004, there were 29 funds, which manage assets
of Rs.153108 crores under 421 schemes.

Current Scenario
The Indian mutual fund industry continued the positive trend in the last quarter of 2014
with average assets under management (AUM) rising to a record high and exceeding
Rs.11 trillion mark, according to CRISIL(Credit Rating Information Services of India
Limited). Average AUM rose 4.34% or Rs.459.46 bn to Rs.11.06 trillion (excluding fund
of funds) in the quarter ended December 2014 as per the data released by the Association
of Mutual Funds in India (AMFI). The industrys average assets increased 26.14% or by
Rs.2.29 trillion in 2014 the fastest calendar year growth since the industry started
declaring quarterly average assets in September 2010. Growth in the latest quarter was
primarily driven by rise in the assets of equity funds; the industrys total gain would have
been higher but for the decline in AUM of liquid funds, FMPs and gold ETFs.

Application of the Michael E. Porters Five Forces Model

POTENTIAL
ENTERANT
Zerodha.
Geojit.
India Infoline.

Suppliers
Web Maintainer
Mscl
Csdl
NSE
BSE
MCX

Competitors
HDFC securities ltd
Kotak securities ltd
INDIABULLS etc.

Buyers
Small investors
Franchise/business
MF Companies
HUF

Substitutes
savings.
Real estate.
Insurance
Bank F.D.
Competition in the industry
The industry is now in a fairly high growth phase. However the brokerage industry is very
cyclical and is impacted by activity levels in the markets. During the downturns such as
2008-2009 periods, the smaller players were squeezed out of the business. As a result there is
a contrast consolidation happening in the industry. Competition is among local as well as
national level players. The local players provide facility for off-line trading while the national
players like ICICIdirect.com and Kotak, HDFC security, Sharekhan provide online trading
services.

Potential of new entrants

A new entrant in addition to the above also needs a reasonable level of capital to fund the
working requirements of the business (finance to customers, deposits with exchanges, etc).
The scale requirements are increasing constantly and as a result a new entrant will require
higher levels of investments in the future to enter the business. As pointed out, it is likely to
see many entrants in the industry. On the contrary, it is likely that the smaller players will exit
by selling out or closing. Some of the new entrants are Geojit, Zerodha, Ventura, Axis
securities, etc.
Power of the supplier
Not much relevant in most segments except investment banking, where employees control
client relationships and hence have to be highly compensated and website maintainers also
act as suppliers provide platform for the customers.
MCX & NCDEX are exchanges where commodities and derivatives are traded. NSE and
BSE are the stock exchanges where the stocks of different companies are traded. Here again
stock brokers have to follow rules and regulations of SEBI.
Power of the customers
This is important in the brokerage business which involves high volume and low brokerage
charges. The extent of buyer power is very low to non-existent in all kinds of retail segments.
Threat of substitutes
The products offered by all firms in this industry are more or less differentiated. Investing
rather saving in the bank rather than investing in a brokerage firm can be one option; else this
is not applicable for this industry.
Here substitute are such instruments which can be used instead of investing in shares.
The instruments like Bank FD, Insurance, and Stock exchanges are the substitutes.

Research Design
Statement of problem
Customers perception on ICICI mutual funds

Objectives of research problem

Awareness of mutual funds in Indian market.

To identify the consumer behaviour while selecting a fund.

To identify the consumer perception about mutual funds investing through ICICI DIRECT.
.
Scope of the study

The scope of the project is to demonstrate ICICI Directs online platform, M.F investment
and seek customers insight on their savings pattern.

Methodology used
Primary Data: Survey methods
This method was adopted because it helps in procuring data and detail information from the
respondents. Here I collected data by filling questionnaires, directly talking to the
respondents.
Secondary data

The secondary data also used in this project, which include various written documents and
other related information about the customer details in their pivotal document-software used
by ICICI DIRECT.
Sample size
The sample of 51 clients having trading account with ICICI direct customers only had been
taken for the whole project and analysis had been explained on this data.