A

SYNOPSIS
ON

“A Study of the Best Performing ICICI Prudential Mutual

Fund & its prospects for future in Nagpur city”

Submitted To

The Rashtrasant Tukdoji Maharaj Nagpur University, Nagpur in partial

fulfillment of the requirement for the award of degree of Master In Business
Administration (MBA)

Submitted by

Roshni Naresh Madne

Project Guide

Prof. Laxmi Mahantare



G. H. RAISONI INSTITUTE OF MANAGEMENT AND

RESEARCH KHAPARKHEDA, NAGPUR

Year
2016 – 2018

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 INDEX

Sr. Contents
No.

1 Introduction

2 Company Profile

3 Advantages And Disadvantages Of Mutual Funds

4 Objectives Of The Study

5 Hypothesis

6 Research Methodology

7 Data Collection

8 Method Of Sampling

9 Data Analysis And Interpretation

10 Bibliography

 INTRODUCTION :

ICICI Prudential Asset Management Company Ltd. is a joint venture between

ICICI Bank, India’s second largest commercial bank & a well-known and trusted

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name in the financial services in India, & Prudential Plc, one of the United Kingdom’s
largest players in the financial services sectors.
In a span of just over 12 years, the company has forged a position of
preeminence as one of the largest Asset Management Company’s in the country,
contributing significantly towards the growth of the Indian mutual fund industry.
Our Average Assets under Management (AAUM) as on Dec 2010 month-end
in Mutual Fund Schemes stood at Rs. 65876.5 Crores. This is in addition to our
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.
As an Asset Management Company, we have over 15 years of experience and
are currently managing a comprehensive range of schemes of more than 46 Mutual
funds and a wide range of PMS Products for our investors, spread across the country.
We service this investor base with our own branch network of over 160 branches and
a distribution reach of over 42,000 channel partners.

Sponsors

ICICI Bank is India's second-largest bank with total assets of Rs. 3,634.00
billion (US$ 81 billion) at 31st March, 2010 and profit after tax Rs. 40.25 billion
(US$ 896 million) for the year ended 31st March, 2010. The Bank has a network of
2016 branches and about 5219 ATM’s in India and presence in 18 countries.
ICICI Bank offers a wide range of banking products and financial services to
corporate and retail customers through a variety of delivery channels and through its
specialized subsidiaries and affiliates in the areas of investment banking, life and non-
life insurance, venture capital and asset management.
The Bank currently has subsidiaries in the United Kingdom, Russia and
Canada, branches in United States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar
and Dubai International Finance Centre and representative offices in United Arab
Emirates, China, South Africa, Bangladesh, Thailand, Malaysia and Indonesia. Our
UK subsidiary has established branches in Belgium and Germany.

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 ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and
the National Stock Exchange of India Limited and its American Depositary Receipts
(ADRs) are listed on the New York Stock Exchange (NYSE).

Prudential Plc (formerly known as Prudential Corporation plc)

Prudential plc is an international financial services group with significant

operations in Asia, the US and the UK. They serve approximately, 25 million
customers and have £290 billion in assets under management. They are among the
leading capitalized insurers in the world with an Insurance Groups Directive (IGD)
capital surplus estimated at £3.4 billion (as at 31 December 2009).

Management Team

Management
 Mr. Nimesh Shah- Managing Director & Chief Executive Officer
 Mr. B Ramakrishna - Executive Vice President
 Mr. Raghav Iyengar - National Head – Sales and distribution
 Mr. Kalyan Prasath - Head - Information Technology
 Mr. Krishna Prasad Tumuluri - Head - International Business
 Mr. Hemant Agarwal - Head - Operations
 Mr. Ashish Kakkar - Head - Human Resources
 Mr. Aashish Somaiyaa - Head – Retail Business

Aashish began his career at ICICI Prudential AMC in 2000 and was a part of the
organization till April 2007. After a brief stint away, he rejoined ICICI Prudential
AMC in October 2008.

A Chemical Engineer, he holds a Masters in Management Studies with

specialization in Finance from NMIMS Mumbai. He has overall work experience of

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over 10 years across the Banking & Financial Services Industry. He is also a certified
trainer.
In his role at ICICI Prudential AMC, Aashish is responsible for driving the
business objectives in retail business through a mix of distribution channels that are
deployed to reach out to investors. The retail sales and distribution team is an
integrated unit of business delivery (sales and service), primarily addressing
distributors and through them individual investors’ needs. Additionally, Aashish is
also responsible for the Product Development and Communication function which
studies investor’s requirements and provides the market with right kind of investment
products and service features.
Aashish enjoys spending most of his time reading. His other interests include
communication, public speaking, teaching and playing racquet games like badminton
and squash.
Fund Management
 Mr. S. Naren - Chief Investment Officer - Equity
 Mr. Chaitanya Pande - Head – Fixed Income
Board of Directors: Asset Management Company
 Ms. Chanda Kochhar - Chairperson
 Mr. Barry Stowe
 Dr. (Mrs.) Swati A Piramal
 Mr. Vikram B. Trivedi
 Mr. Vijay Thacker
 Mr. Dileep C. Choksi
 Mr. N.S. Kannan
 Mr. Nimesh Shah
 Mr. C. R. Muralidharan
Directors of the Trustee Company
 Mr. M. S. Parthasarthy
 Mr. M. N. Gopinath
 Mr. Keki Bomi Dadiseth
 Ms. Madhabi Puri-Buch
What is a Mutual fund?

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 Mutual fund is an investment company that pools money from shareholders
and invests in a variety of securities, such as stocks, bonds and money market
instruments. Most open-end Mutual funds stand ready to buy back (redeem) its shares
at their current net asset value, which depends on the total market value of the fund's
investment portfolio at the time of redemption.
Most open-end Mutual funds continuously offer new shares to investors. Also
known as an open-end investment company, to differentiate it from a closed-end
investment company. Mutual funds invest pooled cash of many investors to meet the
fund's stated investment objective. Mutual funds stand ready to sell and redeem their
shares at any time at the fund's current net asset value: total fund assets divided by
shares outstanding.

In Simple Words, Mutual fund is a mechanism for pooling the resources by

issuing units to the investors and investing funds in securities in accordance with
objectives as disclosed in offer document.
Investments in securities are spread across a wide cross-section of industries
and sectors and thus the risk is reduced. Diversification reduces the risk because all
stocks may not move in the same direction in the same proportion at the same time.
Mutual fund issues units to the investors in accordance with quantum of
money invested by them. Investors of Mutual funds are known as unit holders. The
profits or losses are shared by the investors in proportion to their investments.

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 The Mutual funds normally come out with a number of schemes with different
investment objectives which are launched from time to time.
In India, A Mutual fund is required to be registered with Securities and
Exchange Board of India (SEBI) which regulates securities markets before it can
collect funds from the public.
In Short, a Mutual fund is a common pool of money in to which investors with
common investment objective place their contributions that are to be invested in
accordance with the stated investment objective of the scheme.
Every Mutual Fund is managed by a fund manager, who using his investment
management skills and necessary research works ensures much better return than
what an investor can manage on his own.
When an investor subscribes for the units of a mutual fund, he becomes part
owner of the assets of the fund in the same proportion as his contribution amount put
up with the corpus (the total amount of the fund). Mutual Fund investor is also known
as a mutual fund shareholder or a unit holder. Any change in the value of the
investments made into capital market instruments (such as shares, debentures etc) is
reflected in the Net Asset Value (NAV) of the scheme. NAV is defined as the market
value of the Mutual Fund scheme's assets net of its liabilities. NAV of a scheme is
calculated by dividing the market value of scheme's assets by the total number of
units issued to the investors.

Types Of Mutual Fund Schemes

 Open – Ended Schemes

 Closed – Ended Schemes
 Interval Schemes
 Growth Schemes
 Income Schemes
 Balanced Schemes
 Tax Saving Schemes
 Index Schemes
 Sector Specific Schemes.

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Advantages of mutual funds :-

 Professional Management.

 Diversification.

 Convenient Administration.

 Costs Effectiveness

 Liquidity.

 Transparency.

 Tax benefits.

 Affordability

Disadvantages of mutual funds :-

 Dilution –

 Taxes –

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 OBJECTIVES OF THE STUDY

1. To identify the best performing funds of ICICI prudential mutual fund.

2. To identify the factors considered in judging the performance of a fund.

3. To identify, out of the best funds, which funds have the highest demand &

why.

4. To study the prospects of the identified best funds in future.

5. To study which best fund is good for different category of investors.

6. Observe the fund management process of mutual funds.

7. To give an idea about the regulations of mutual funds.

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 HYPOTHESIS

As per the research objectives, we have define the following statements as the
research hypothesis-

 ICICI Prudential Dynamic Plan is the best diversified sector performing

fund.

 ICICI Prudential Infrastructure Fund is the best performer sector fund.

 ICICI Prudential Liquid Plan is the best performer income fund.

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 RESEARCH METHODOLOGY

 Sample City: Nagpur

The research is descriptive and analytical in nature and conducted at newly

emerged Mega City of Maharashtra i.e. at Nagpur geographical area. For obtaining
the response of the investors an instrument (questionnaire) with multi choice options
was constructed by the researcher himself. During research, we have covered
numerous types of investors with the help of several entities. These entities can be
listed as follows-

1> Brokerage houses.

2> Authorized Mutual Fund Advisors.
3> Individual references &
4> Personal contacts etc.

 Sample Size: 100 Investors

For the fulfillment of the result of this study an optimal sample size was
chosen i. e. 100 investors.

 Sample Period: Based on last 1 years

Sample of this study was based on the investments made up to last the one
year. Since mutual fund has minimum exit load period of one year it was not
favorable for us to have a sample period less than this.

 Sampling technique: Convenience Sampling

Since in this study, we have taken samples of those who simply agreed to take part,
were around and available at the time.

 Data Collection Method

The various sources from where the data are collected for the study can be as follows-
(i) Primary Sources i.e. with the help of questionnaire, by interview, and by
own observation.
(ii) Secondary Sources i.e. from company journals, magazines, news papers,
internet, and annual performance reports.

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 Primary Data Collection

The objective of Primary data is formulated on the basis of research

objectives. Objectives set the guidelines and directions of research planning
.Formulating the objectives offers the best feasible means of solution. The primary
data for my study was being collected by conducting survey. As primary data are
considered the most reliable source, so, our basic focus was to collect more and more
primary or firsthand data. As there are very high chances of manipulation among
these data hence utmost accuracy and reliability are maintained. A questionnaire with
five questions, relevant to this study, was constructed and given directly to the
respective investors. But for more satisfaction and accurate result we also consulted
with ‘mutual fund advisors’ and some renowned experts of mutual fund industry.
Personal observation and analysis is always a part of result.

 Secondary Data Collection

After deciding my objective I looked for collecting and studying secondary

data. Secondary data are considered as convenient and also somehow reliable. In this
study, majorly, secondary data are used for the description. Company website,
company journals, magazines, newspapers and factsheets were very helpful in the
collection of data.

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 ANALYSIS AND INTERPRETATION OF DATA

During study we have gathered the data with the help of questionnaire. Since
the questionnaire consists of several questions so we have used textual as well as
graphical presentation for more clarification.

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 BIBLIOGRAPHY

Books:-
(1) Capital Market – Institutions and Instruments Third Edition
(Frank J. Fabozzi)
(Franco Modigliani)

(2) Research Methodology –

(Dipak Kumar Bhattacharyya)

News Papers:-

(1) Business Standard

(2) Economic Times

Internet:-

(1) www.icicipruamc.com
(2) www.ventura1.com
(3) www.religareonline.com
(4) www.amfiindia.com
(5) www.moneycontrol.com

Submitted by Project Guide

Roshni Naresh Madne Prof. Laxmi Mahantare

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