CHAPTER -1

INTRODUCTION

INTRODUCTION MUTUAL FUND

Mutual fund is a trust that pools money from a group of investors (sharing common
financial goals) and invest the money thus collected into ASSET classes that match
the stated investment objectives of the scheme. Since the stated investment objective
of a mutual fund scheme generally forms the basis for an investors decision to
contribute money to the pool, a mutual fund cannot deviate from its objectives at any
point of time.
Every Mutual Fund is managed by a fund manager, who using his investment
management skills and necessary research work ensures much better return than what
an investor can manage on his own. The capital appreciation and other incomes
earned from these investments are passed on to the investors (also known as unit
holders) in proportion of the number of units they own.
Concept of Mutual Fund
Many investors with common financial objectives
pool their money

Investors, on a proportionate basis, get mutual fund

units for the sum contributed to the pool

The money collected from investors is invested

into shares, debentures and other securities by the
fund manager

The fund manager realizes gains or losses, and

collects dividend or interest income

Any capital gains or losses from such investments

are passed on to the investors in proportion of the
number of units held

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
2

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 schemes ASSETs by
the total number of units issued to the investors.
For Example:

If the market value of the ASSETs of a fund is Rs. 100,000.

The total number of units issued to the investors is equal to 10,000.
Then the NAV of this scheme = (A)/(B), i.e 100,000/10,000 or 10.00
Now if an investor x owns 5 units of this scheme
Then his total contribution to the fund is Rs.50( i.e Number of units held multiplied
by the NAV of the scheme)

NEED AND IMPORTANCE OF THE STUDY

1.Mutual funds are dynamic financial institutions which play crucial role in an
economy by mobilizing savings and investing them in the capital market.
2.The activities of mutual funds have both short and long term impact on the savings
in the capital market and the national economy.
3.Mutual funds, trust, assist the process of financial deepening & intermediation.
4.To banking at the same time they also compete with banks and other financial
institutions.
5.India is one of few countries today to maintain a study growth rate is domestic
savings.

SCOPE OF THE STUDY

The study is limited to the analysis made on two major types of schemes offered by
six banks. Each scheme is calculated in term of their risk and return using different
performance measurement theories. The reasons for such performance in immediately
analyzed in the commentary. Column charts are used to reflect the portfolio risk and
return.

OBJECTIVES OF THE STUDY

4

To understand what Mutual fund companies are.

To understand Mutual fund companies viz. UTI, SBI, ICICI, HSBC & ING VYSYA

BANK.
To understand each company performance basing on weekly wise data starting from

Monday.
To understand the investment strategies followed by each company.

HYPOTHESIS
The market data that has been used to see whether the risk and return calculated can
be used has an indicator to the investor to minimize the risk and maximize the returns
on its investment.

METHODOLOGY
For, the purpose of the study, the data collected from primary and secondary
has sanitized edited and presented in the form of tables and statements. The analysis
of the data has been made with the help of certain mathematical techniques lie
percentages etc. Where ever feasible and appropriate graphs and diagrams are used.

The collection of data is done through two principle sources viz.

Primary data.
Secondary data.

PRIMARY DATA
It is the information collected directly without any reference. In the study, it mainly
interviews with concerned officers and staffs either individually or collectively. Some
of the information had been verified or supplemented with personal observation, the
data collected through conducting personal interview with the officer of the India
Bulls.
SECONDARY DATA
The data that is used in this project is of secondary nature. The data has been collected
from secondary sources such as various websites, journals, newspapers, books, etc.
METHOD OF STUDY
The data collected for the two sectors are of three months data i.e. Nov 2014 Jan
2015. The data for study purpose is taken on weekly basis. The data taken into
consideration is of every Monday.
NATIONALISED BANKS: SBI, UTI, ING VYSYA
CORPORATE BANKS: HSBC, ICICI.
TIME PERIOD
The time duration of the study for analyzing the data is from Dec 2014 to Jan 2015.
Data is collected from websites and ECONOMIC TIMES.
LIMITATIONS OF THE STUDY:

The study is conducted in short period, due to which the study may not be detailed in

all aspects.
The study is limited only to the analysis of different schemes and its suitability to

different investors according to their risk-taking ability.

The study is based on secondary data available from monthly fact sheets, web sites,

offer documents, magazines and newspapers etc. as primary data was not accessible.
The study is limited by the detailed study of various schemes.

CHAPTER -2
REVIEW OF LITERATURE
7

Mutual fund is a trust that pools money from a group of investors (sharing common
financial goals) and invest the money thus collected into ASSET classes that match
the stated investment objectives of the scheme. Since the stated investment objective
of a mutual fund scheme generally forms the basis for an investors decision to
contribute money to the pool, a mutual fund cannot deviate from its objectives at any
point of time.
Every Mutual Fund is managed by a fund manager, who using his investment
management skills and necessary research work ensures much better return than what
an investor can manage on his own. The capital appreciation and other incomes
earned from these investments are passed on to the investors (also known as unit
holders) in proportion of the number of units they 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.
8

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 schemes ASSETs by
the total number of units issued to the investors.

BROAD MUTUAL FUND TYPES

10

1.Equity Funds
Equity funds are considered to be the more risky funds as compared to other fund
types, but they also provide higher returns than other funds. It is advisable that an
investor looking to invest in an equity fund should invest for long term i.e. for 3 years
or more. There are different types of equity funds each falling into different risk
bracket. In the order of decreasing risk level, there are following types of equity
funds.
Aggressive Growth Funds In Aggressive Growth Funds, Fund managers aspire for
maximum capital appreciation and invest in less researched shares of speculative
nature. Because of these speculative investments, Aggressive Growth Funds become
more volatile and thus, are prone to higher risk than any other equity funds.
Growth Funds Growth Funds also invest for capital appreciation (with time
horizon of 3 to 5 years) but they are different from Aggressive Growth Funds in the
sense that they invest in companies that are expected to outperform the market in the
future. Without entirely adopting speculative strategies, Growth Funds invest in those
companies that are expected to post above average earnings in the future.
Speciality Funds Speciality Funds have stated criteria for investments and their
portfolio comprises of only those companies that meet their criteria. Criteria for some
speciality funds could be to invest/not to invest in particular regions/companies.
Speciality funds are concentrated and thus, are comparatively riskier than diversified
funds. There are following types of speciality funds.
Sector Funds: Equity funds that invest in a particular sector/industry of the market
are known as Sector Funds. The exposure of these funds is limited to a particular
sector (say Information Technology, Automobiles, Banking, Pharmaceuticals or Fast
Moving Consumer Goods) which is why they are more risky than equity funds that
invest in multiple sectors.
Foreign Securities Funds: Foreign Securities Equity Funds have the option to invest
in one or more foreign companies. Foreign securities funds achieve international
diversification and hence they are less risky than sector funds. However, foreign
securities funds are exposed to foreign exchange rate risk and country risk.
Mid-Cap or Small-Cap Funds: Funds that invest in companies having lower market
capitalization than large capitalization companies are called Mid-Cap or Small-Cap
11

Funds. Market capitalization of Mid-Cap Companies is less than that of big, Blue chip
companies(less than Rs. 2500 crores but more than Rs. 500 crores) and Small-Cap
companies have market capitalization of less than Rs. 500 crores. Market
Capitalization of a company can be calculated by multiplying the market price of the
companys share by the total number of its outstanding shares in the market. The
shares of Mid-Cap or Small-Cap Companies are not as liquid as of Large-Cap
Companies which gives rise to volatility in share prices of these companies and
consequently, investment gets risky.
Diversified Equity Funds Except for a small portion of investment in Liquid
money market, diversified equity funds invest mainly in equities without any
concentration on a particular sector(s). These funds are well diversified and reduce
sector-specific or company-specific risk. However, like all other funds diversified
equity funds too are exposed to equity market risk. One prominent type of diversified
equity fund in India is Equity Linked Savings Schemes (ELSS). As per the mandate, a
minimum of 90% of investments by ELSS should be in equities at all times. ELSS
investors are eligible to claim deduction from taxable income (up to Rs 1 lakh) at the
time of filing the income tax return. ELSS usually has a lock-in period makes him
liable to pay income tax on such income(s) for which he may have received any tax
exemption(s) in the past.
Equity Index Funds Equity Index Funds have the objective to match the
performance of a specific stock market index. The portfolio of these funds comprises
of the same companies that form the index and is constitutes in the same proportion as
the index. Equity index funds that follow broad indices (like S&P, CNX, NIFTY,
SENSEX) are less risky than equity index funds that follow narrow sectoral indices
(like BSE, BANKEX or CNX Bank Index etc). Narrow indices are less diversified
and therefore, are more risky.

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Debt/Income Funds
Funds that invest in medium to long-term debt instruments issued by private
companies, banks, financial institutions, governments and other entities belonging to
various sectors (like Infrastructure companies etc.) are known as Debt / Income
Funds. Debt Funds are low risk profile funds that seek to generate fixed current
income (and not capital appreciation) to investors. In order to ensure regular income
to investors, debt (or income) funds distribute large fraction of their surplus to
investors. Although debt securities are generally less risky than equities, they are
subject to credit risk (risk of default) by the issuer at the time of interest or principal
payment. To minimize the risk of default, debt funds usually invest in securities from
issuers who are rated by credit rating agencies and are considered to be of
Investment objectives, there can be following types of debt funds:
Diversified Debt Funds Debt Funds that invest in all securities issued by entities
belonging to all sectors of the market are known as diversified debt funds. The best
feature of diversified debt funds is that investments are properly diversified into all
sectors which results in risk reduction. Any loss incurred, on account of default by a
debt issuer is shared by all investors which further reduces risk for an individual
investor.
Focused Debt Funds Unlike diversified debt funds, focused debt funds are narrow
focus funds that are confined to investments in selective debt securities, issued by
companies of a specific sector or industry or origin. Some examples of focused debt
funds are sector, specialized and offshore debt funds, funds that invest only in Tax
Free Infrastructure or Municipal Bonds. Because of their narrow orientation, focused
debt funds are more risky as compared to diversified debt funds. Although not yet
available in India, these funds are conceivable and may be offered to investors very
soon.
Assured Return Funds Although it is not necessary that a fund will meet its
objectives or provide assured returns to investors, but there can be funds that come
with a lock-in period and offer assurance of annual returns to investors during lock-inperiod. Any shortfall in returns is suffered by the sponsors or the ASSET Management
Companies (AMCs). These funds are generally debt funds and provide investors with
a

low-risk

investment
13

opportunity.

However, the security of investments depends upon the net worth of the guarantor
(whose name is specified in advance on the offer document). To safeguard the
interests of investors, SEBI permits only those funds to offer assured return schemes
whose sponsors have adequate net-worth to guarantee returns in the future. In the
past, UTI had offered assured return schemes (i.e. Monthly Income Plans of UTI) that
assured specified returns to investors in the future. UTI was not able to fulfill its
promise and faced large shortfalls in returns. Eventually, government had to intervene
and took over UTIs payment obligations on itself. Currently, no AMC in India offers
assured return schemes to investors, though possible.
Fixed Term Plan Series - Fixed Term Plan Series usually are closed-end schemes
having short term maturity period (of less than one year) that offer a series of plans
and issue units to investors at regular intervals. Unlike closed-end funds, fixed term
plans are not listed on the exchanges. Fixed term plan series usually invest in
debt/income schemes and target short-term investors. The objective of fixed term plan
schemes is to gratify investors by generating some expected returns in a short period.
3.Gilt Funds : Also known as Government Securities in India, Gilt Funds invest in
government papers (named dates securities) having medium to long term maturity
period. Issued by the Government of India, these investments have little credit risk
(risk of default) and provide safety of principal to the investors. However, like all debt
funds, gilt funds too are exposed to interest rate risk. Interest rates and prices of debt
securities are inversely related and any change in the interest rates results in a change
in the NAV of debt/gilt funds in and opposite direction.
4.Money Market/Liquid Funds
Money market / Liquid funds invest in short-term (maturing within one year) interest
bearing debt instruments. These securities are highly liquid and provide safety of
investment, thus making money market/liquid funds the fastest investment option
when compared with other mutual fund types. However, even money market/liquid
funds are exposed to the interest rate risk. The typical investment options for liquid
funds include Treasury Bills (issued by governments), Commercial papers (issued by
companies) and Certificates of Deposit (issued by banks).

14

5.Hybrid Funds
As the name suggests, hybrid funds are those funds whose portfolio includes a blend
of equities, debts and money market securities. Hybrid funds have an equal proportion
of debt and equity in their portfolio. There are following types of hybrid funds in
India:
Balanced Funds The portfolio of balanced funds include ASSETs like debt
securities, convertible securities, and equity and preference shares held in a relatively
equal proportion. The objectives of balanced funds are to reward investors with a
regular income, moderate capital appreciation and at the same time minimizing the
risk of capital erosion. Balanced funds are appropriate for conservative investors
having a long term investment horizon.
Growth and Income Funds Funds that combine features of growth funds and
income funds are known as Growth and Income Funds. These funds invest in
companies having potential for capital appreciation and those known for issuing high
dividends. The level of risks involved in these funds is lower than growth funds and
higher than income funds.
6.Commodity Funds
Those funds that focus on investing in different commodities (like metals, food grains,
crude oil etc.) or commodity companies or commodity futures contracts are termed as
Commodity Funds. A commodity fund that invests in a single commodity or a group
of commodities is a specialized commodity fund and a commodity fund that invests in
all available commodities is a diversified commodity fund and bears less risk than a
specialized commodity fund. Precious Metals Fund and Gold Funds (that invest in
gold, gold futures or shares of gold mine) are common examples of commodity funds.
Real Estate Funds
Funds that invest directly in real estate or lend to real estate developers or invest in
shares/securitized ASSETs of housing finance companies, are known as Specialized
Real Estate Funds. The objective of these funds may be to generate regular income for
investors or capital appreciation.

15

8.Exchange Traded Funds (ETF)

Exchange Traded Funds provide investors with combined benefits of a closed-end and
an open-end mutual fund. Exchange Traded Funds follow stock market indices and
are traded on stock exchanges like a single stock at index linked prices. The biggest
advantage offered by these funds is that they offer diversification, flexibility of
holding a single share (tradable at index linked prices) at the same tim. Recently
introduced in India, these funds are quite popular abroad.
9.Fund of Funds
Mutual funds that do not invest in financial or physical ASSETs but do invest in other
mutual fund schemes offered by different AMCs, are known as Fund of Funds. Fund
of Funds maintains a portfolio comprising of units of other mutual fund schemes, just
like conventional mutual funds maintain a portfolio comprising of equity/debt/money
market instruments or non financial ASSETs.
Fund of Funds provide investors with an added advantage of diversifying into
different mutual fund schemes with even a small amount of investment, which further
helps in diversification of risks. However, the expenses of Fund of Funds are quite
high on account of compounding expenses of investments into different mutual fund
schemes.

Risk Hierarchy of Different Mutual Funds

Thus, different mutual fund schemes are exposed to different levels of risk and
investors should know the level of risks associated with these schemes before
16

investing. The graphical representation here under provides a clearer picture of the
relationship between mutual funds and levels of risk associated with these funds:

MUTUAL FUND STRUCTURE

17

The SEBI (Mutual funds) Regulations 1993 define a mutual fund (MF) as a fund
established in the form of a trust by a sponsor to raise money by the Trustees through
the sale of units to the public under one or more schemes for investing in securities in
accordance with these regulations.
These regulations have since been replaced by the SEBI (Mutual Funds) Regulations,
1996. The structure indicated by the new regulations is indicated as under.
The mutual fund needs to be constituted in the form of a trust and the instrument of
the trust should be in the form of a deed registered under the provisions of the Indian
Registration Act, 1908.
The sponsor is required to contribute at least 40% of the minimum net worth (Rs. 10
crores) of the ASSET management company. The board of trustees manages the MF
and the sponsor executes the trust needs in favour of the trustees. It is the job of the
MF trustees to see that schemes floated and managed by the AMC appointed by the
trustees are in accordance with the trust deed and SEBI guidelines.

Choosing a Fund
The first step to investing in Mutual Fund is to define the objective of investing. You
should clearly lay down the purpose for which you desire to invest. There are several
schemes tailor made to meet certain personal financial goals (childrens education,
18

marriage, retirement etc.) which can be availed of. You should define the tenure of
investment and the risk appetite you have. Thereafter, you can select a fund type that
best meets your needs i.e. income schemes, liquid schemes, tax saving schemes,
equity schemes etc. Given the plethora of fund options available to you, you can then
choose the particular fund that you are comfortable with.
You can choose the fund on various criteria but primarily these can be the following:

The track record of performance of schemes over the last few years managed by the

fund.
Quality of management and administration.
Parentage of the Mutual Fund.
Quality and adequacy of disclosures.
Service levels.
The price at which you can enter/exit (i.e. entry load / exit load) the scheme and its

impact on overall return.

The market price of the units of the scheme (where available) to see the

discount/premium that the market assigns to the stated NAV of the scheme.
Independent rating of the schemes, if available.
You could be investing in a mutual fund either at the initial stage when the mutual
fund approaches the market through an offer document route or at a subsequent stage.
If you choose to invest at the initial stage, the offer document would detail the
schemes being offered and the manner of investing. The manner is usually similar to
that of investing any public issue of any security (equity/debt), if you are planning to
purchase the units subsequently. Then the following choices exist:
1.A close ended scheme. If the desired, units are of a close-ended scheme, then the
investor would be able to purchase them at the stock exchange where the MF has
listed them. This purchase would resemble the purchase of an equity share wherein
the investor would pay the quoted price of the unit as well as a brokerage for the
purchase transaction. In the case of a close ended scheme, the sale also is affected
through the stock exchange mechanism and resembles the sale of equity share. The
pricing for the transaction, as was mentioned earlier, is driven by the price the units
quote. This is driven by the NAV (Net ASSET Value) of the scheme. The price,
however, may be either at a discount or premium to the NAV.

19

1.Purchasing a unit in an open-ended scheme is different as there is no exchange

where these units are traded. Their price reflects the NAV of the scheme. The mutual
fund in an open-ended scheme sells these units to the investor at the NAV (plus a
sale / entry load). Selling units in an open-ended scheme is similar to the way they are
purchased. It is the mutual fund that buys back the units and at a price based on the
NAV. The actual price is the NAV less the exit load. The exit load is similar in concept
to the entry load.
The Ground rules of Mutual Fund Investing
Moses gave to his followers 10 commandments that were to be followed till eternity.
The world of investments too has several ground rules meant for investors who are
novices in their own right and wish to enter the myriad world of investments. These
come in handy for there is every possibility of losing what one has if due care is not
taken.
1.Assess Yourself: Self-assessment of ones needs; expectations and risk profile is of
prime importance failing which; one will make more mistakes in putting money in
right places than otherwise. One should identify the degree of risk bearing capacity
one has and also clearly state the expectations from the investments. Irrational
expectation will only bring pain.
2.Try to Understand Where The Money is Going: It is important to identify the
nature of investment and to know if one is compatible with the investment. One can
lose substantially if one picks the wrong kind of Mutual Fund. In order to avoid any
confusion it is better to go through the literature such as document and fact sheets that
mutual fund companies provide on their funds.

1.Dont Rush In Picking Funds, Think First: One first has to decide what he wants
the money for and it is this investment goal that should be the guiding light for all
investments done. It is thus important to know the risks associated with the fund and
align it with the quantum of risk one is willing to take. One should take a look at the
portfolio of the funds for the purpose. Excessive exposure to any specific sector
should be avoided, as it will only add to the risk of the entire portfolio. Mutual funds
invest with a certain ideology such as the Value Principle or Growth Philosophy.
20

Both have their share of critics but both philosophies work for investors of different
kinds. Identifying the proposed investment philosophy of the fund will give and
insight into the kind of risks that it shall be taking in future.
2.Invest Dont Speculate: A common investor is limited in the degree of risk that he
is willing to take. It is thus of key importance that there is thought given to the process
of investment and to the time horizon of the intended investment. One should abstain
from speculating which in other words would mean getting out of one fund and
investing in another with the intention of making quick money. One would do well to
remember that nobody can perfectly time the market so staying invested.
3.Dont Put All Eggs in One Basket: this old age adage is of utmost importance. No
matter what the risk profile of a person is, it is always advisable to diversify the risks
associated. So putting ones money in different ASSET classes is generally the best
option as it averages the risks in each category. Thus, even investors of equity should
be judicious and invest some portion of the investment in debt. Diversification even in
money in the hands of several fund managers. This might reduce the maximum return
possible, but will also reduce the risks.
Be Regular: Investing should be a habit and not an exercise undertaken at ones
wishes, if one has to really benefit from them. As we said earlier, since it is extremely
difficult to know when to enter or exit the market. It is important to beat the market by
being systematic. The basic philosophy of Rupee cost averaging would suggest that if
one invests regularly through the ups and downs of the market, he would stand a
better chance of generating more returns than the market of the entire duration. The
SIPs (Systematic Investment Plans) offered by all funds helps in being systematic

Performance Measures of Mutual Funds

Mutual Fund industry today, with about 34 players and more than five hundred
schemes, is one of the most preferred investment avenues in India. However with a
plethora of schemes to choose from the retail investor faces problems in selecting
funds. Factors such as investment strategy and management style are qualitative, but
the funds record is an important indicator too. Though past performance alone cannot
be indicative of future performance, it is, frankly, the only quantitative way to judge
21

how good a fund is at present. Therefore, there is a need to correctly assess the past
performance of different mutual funds.
Worldwide, good Mutual Fund companies over are known by their AMCs and this
fame is directly linked to their superior stock selection skills. For Mutual funds to
grow, AMCs must be held accountable for their selection of stocks. In other words,
there must be some performance indicator that will reveal the quality of stock
selection of various AMCs.
Return alone should not be considered as the basis of measurement of the
performance of a mutual fund scheme. It should also include the risk taken by the
fund manager because different funds will have different levels of risk attached to
them. Risk associated with a fund, in a general, can be defined as variability or
fluctuations in the returns generated by it. The higher the fluctuations in the returns
generated by a fund are resultant of two guiding forces.
First, general market fluctuations, which affect all the securities, present in the
market, called market risk or systematic risk and second, fluctuations due to specific
securities present in the portfolio of the fund, called unsystematic risk.
The Total Risk of a given fund is sum of these t\Vo and is measured in terms of
standard deviation of returns of the fund, Systematic risk. ON the other hand is
measured in terms of Beta, which represents fluctuations in the NAV of the fund vis-vis market. The more responsive the NAV of a mutual fund is to the changes in the
market; higher will be its beta. Beta is calculated by relating the returns on a mutual
fund with the returns in the market. While unsystematic risk can be diversified
through investments in a number of instruments, systematic risk cannot

By using the risk return relationship, we try to assess the competitive strength of the
mutual fund vis--vis one another in a better way:
In order to determine the risk-adjusted returns of investment portfolios, several
eminent authors have worked since 1960s to develop composite performance indices
to evaluate a portfolio by comparing alternative portfolios within a particular risk
class.
22

LIST OF AMCs
ABN AMRO Mutual Fund
Birla Mutual Fund
Deutsche Mutual Fund
23

DSP Merrill Lynch Mutual Fund

Franklin Templeton Mutual Fund
HDFC Mutual Fund
ING Vysya Mutual Fund
JM Financial Mutual Fund
Kotak Mahindra Mutual Fund
LIC Mutual Fund
Morgan Stanley Mutual Fund
Principal Mutual Fund
Prudential ICICI Mutual Fund
Reliance Mutual Fund
SBI Mutual Fund
Sundaram Mutual Fund
TATA Mutual Fund
Unit Trust of India Mutual Fund
UTI Mutual Fund
LIST OF SCHEMES IN PRUICICI
Open-Ended Schemes
Prudential ICICI Aggressive Plan Dividend
Prudential ICICI Aggressive Plan Growth
Prudential ICICI Balanced Plan Dividend
Prudential ICICI Balanced Plan Growth
Prudential ICICI Discovery Fund Institutional option 1
24

Prudential ICICI Dynamic Plan Dividend

Prudential ICICI Dynamic Plan Growth
Prudential ICICI Dynamic Plan Institutional option-1
Prudential ICICI Emerging Star Dividend
Prudential ICICI Emerging Star Growth
Prudential ICICI Emerging Star Institutional option-1
Prudential ICICI FMCG Fund Dividend
Prudential ICICI FMCG Fund Growth
Prudential ICICI Flexible Income Plan Daily Dividend
Prudential ICICI Flexible Income Plan Monthly Dividend
Prudential ICICI Floating Rate plan A Dividend
Prudential ICICI Floating Rate plan B Growth
Prudential ICICI GILT Fund Investment plan Dividend
Prudential ICICI GILT Fund Investment plan Growth
Prudential ICICI Growth plan Dividend
Prudential ICICI Growth plan Growth
Prudential ICICI Income multiplier fund Dividend
Prudential ICICI Income multiplier fund Growth
Prudential ICICI Income plan Dividend
Prudential ICICI Income plan Growth
Prudential ICICI Index Fund
Prudential ICICI Infrastructure Fund Dividend
Prudential ICICI Infrastructure Fund Growth
Prudential ICICI Liquidity Institutional plus plan Dividend
Prudential ICICI Liquidity Institutional plan Growth
Prudential ICICI Liquid plan Dividend
Prudential ICICI Liquid plan Growth
Prudential ICICI Liquidity super Institutional plan Growth
Prudential ICICI Long term plan Dividend
Prudential ICICI MIP Cumulative
Prudential ICICI Power Dividend
Prudential ICICI Power Growth
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Prudential ICICI Services Industries Fund Dividend

Prudential ICICI Services Industries Fund Growth
Prudential ICICI Tax plan Dividend
Prudential ICICI Tax plan Growth
Prudential ICICI Technology Fund Dividend
Prudential ICICI Technology Fund Growth
Prudential ICICI Very Aggressive plan Growth
Prudential ICICI Very Cautious plan Dividend

IN PRUICICI MANY SCHEMES ARE AVAILABLE, LIKE OPEN - ENDED,

CLOSED ENDED, REDEEMED SCHEMES. BUT HERE SELECTED FEW
SCHEMES ONLY ARE PRESENTED FROM OPEN ENDED.

ABOUT CHOOSED SCHEMES

Prudential ICICI Tax Plan
ICICI Prudential Tax Plan is an open-ended equity linked saving scheme (ELSS). It
has a lock-in period of 3 years, which ensures that you compulsorily remain invested
over this period. This 3 year lock-in gives the fund manager the flexibility to make
strategic long term investments in a diversified portfolio comprising a mix of large
and medium sized stocks, chosen after careful fundamental research. All these stocks
are growth oriented and have a patient, long term style.
ICICI Prudential Tax Plan is suited for patient investors who have a long term
investing horizon of 3-5 years and at the same time are looking at tax saving.

Prudential ICICI GROWTH Plan

26

ICICI Prudential Growth Plan seeks to invest in large, profitable and well known
companies, and aims to benefit from the best long term investments that the market
has to offer in the large-cap space. The investments are spread across sectors to ensure
risk diversification, and stocks are selected through rigorous fundamental bottom up
analysis.

TYPES OF MUTUAL FUND SCHEMES

BY STRUCTURE

Open-Ended Schemes
Close-Ended Schemes
Interval Schemes

BY INVESTMENT OBJECTIVE

Growth Schemes
Income Schemes
Balanced Schemes
Money Market Schemes
OTHER SCHEMES

Tax Saving Schemes

27

Special Schemes
Index Schemes
Sector Specific Schemes
Mutual Fund Schemes may be classified on the basis of its structure and its
investment objective.
BY STRUCTURE:
Open-Ended Funds
An Open-ended 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 Funds
A closed end funds has a stipulated maturity period which generally ranging from 3 to
15 years. The fund is open for subscription only during a specific period. Investors
can invest in the scheme at the time of the initial public issue and thereafter they can
buy or sell the units of the scheme on the stock exchanges where they are listed. These
combine the features of open-ended and close-ended schemes. They are open for sale
or redemption during pre-determined intervals at NAV related prices.
These combine the features of open-ended and close-ended schemes. They are open
for sale or redemption during pre-determined intervals at NAV related prices.
By Investment Objective:
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to longterm. Such schemes normally invest the majority of their corpus in equities. It has
been proven that returns from stocks, have outperformed most other kind of
investments held over the long term. Growth schemes are ideal for investors having a
long-term outlook seeking growth over a period of time.
Income Funds

28

The aim of income funds is to provide regular and steady income to investors. Such
schemes generally invest in fixed income securities such as bonds, corporate
debentures and government securities. Income funds are ideal for capital stablility and
regular income.
Balanced Funds
The aim of balanced funds is to provide both growth and regular income. Such
schemes periodically distribute a part of their earning and investment both in equities
and fixed income securities in the proportion indicated in their offer documents. In a
rising stock market, the NAV of these schemes may not normally keep pace, or fall
equally when the market falls. These are ideal for investors looking for a combination
of income and moderate growth.
Money Market Funds
For over 30 years, money market funds have treated investors well. Money market
funds have been around for 30 years and are a very popular place for investors to park
their money.
Money market funds are a type of mutual fund that invests in short-term (less than a
year) debt securities of agencies of the U.S. Government, banks and corporations and
U.S. Treasury Bills. They are fixed at $1 per share and only the yield fluctuates.

Load Funds
A load fund is one that charges a commission for entry or exit. That is, each time you
buy or sell units in the fund, a commission will be payable. Typically entry exit loads
range from 1% to 2%. It could be corpus is put to work.
No-Load Funds
A No-Load fund is one that does not charge a commission for entry or exit. That is, no
commission is payable on purchase or sale of units in the fund. The advantage of a
No-Load fund is that the entire corpus put to work.
Other Schemes:
29

Tax Saving Schemes:

These schemes offer tax rebates to the investor under specific provisions of the Indian
income tax laws as the Government offers tax incentives for investment in Equity
Linked Saving Scheme (ELSS) and Pension Schemes are allowed as deduction u/s 88
of the Income Tax Act. The Act also provide opportunities to investors to save capital
gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital ASSET
has been sold to April 1,2014 and the amount is invested before September 30,2014.
Special Schemes:
Industry Specific Schemes
Industry Specific Schemes invest in the industries specified in the offer document.
The investment of these funds is limited to specific like Info Tech, FMCG, and
Pharmaceuticals etc.

Index Schemes:
Index Funds attempt to replicate the performance of a particular index such as the
BSE, Sensex or The NSE.

Sectoral Schemes:
Sectoral Funds are those, which invest exclusively in a specified industry or a group
of industries or various segments such as A Group shares or initial public offerings.
Frequently Used Terms
Net ASSET Value (NAV)
Net ASSET Value is the market value of the ASSETs of the Scheme minus its
Liabilities. The per unit NAV is the net ASSET value of the scheme divided by the
number of units outstanding on the Valuation Date.

30

Is the price at which a close-ended scheme repurchases its units and it may include a
back-end load. This is also called Bid Price.
Redemption Price
Redemption price is the price at which open-ended schemes repurchase their units and
close-ended schemes redeem their units on maturity. Such prices are NAV related.
Sales Load
Sales load is a charge collected by a scheme when it sells the units, also called Frontend load. Schemes that do not charge a load are called No Load schemes.

CHAPTER -3
INDUSTRY PROFILE
31

& COMPANY PROFILE

32

INDUSTRY PROFILE
Banking in India
Banking in India originated in the last decades of the 18th century. The oldest bank in
existence in India is the State Bank of India, a government-owned bank that traces its
origins back to June 1806 and that is the largest commercial bank in the country.
Central banking is the responsibility of the Reserve Bank of India, which in 1935
formally took over these responsibilities from the then Imperial Bank of India,
relegating it to commercial banking functions. After Indias independence in 1947, the
Reserve Bank was nationalized and given broader powers. In 1969 the government
nationalized the 14 largest commercial banks; the government nationalized the six
next largest in 1980.
Currently, India has 96 scheduled commercial bank (SCBs) 27 public sector banks
(that is with the Government of India holding a stake), 31 private banks (these do not
have government stake; they may be publicly listed and traded on stock exchanges)
and 38 foreign banks. They have a combined network of over 53,000 branches and
17,000 ATMs. According to a report by ICRA limited a rating agency, the public
sector banks hold over 75% of total ASSETs of the banking industry, with the private
and foreign banks holding 18.2% and 6.5% respectively.
Early History
Banking in India originated in the last decades of the 18 th century. The first banks
were the General Bank of India which started in 1786, and the Bank of Hindustan,
Both of which are now defunct. The oldest bank in existence in India is the State
Bank of India, which originated in the Bank of Calcutta in June 1806, which almost
immediately became the Bank of Bengal. This was one of the three presidency banks,
the other two being the Bank of Bombay and the Bank of Madras, all three of which
were established under charters from the British East India Company. For many years
the Presidency banks acted as quasi-central banks, as did their successors. The three
banks merged in 1921 to form the Imperial Bank of India, which, upon Indias
Independence, became the State Bank of India.

33

Indian merchants in Calcutta established the Union Bank in 1839, but it failed in 1848
as a consequence of the economic crisis of 1848-49. The Allahabad Bank, established
in 1865 and is still functioning today, is the oldest Joint Stock Bank of India. It was
not the first though . That honor belongs to the Bank of Upper India, which was
established in 1863, and which survived until 1913, when it failed, with some of its
ASSETs and liabilities being transferred to the Alliance Bank of Simla.
When the American Civil War stopped the supply of cotton to Lancashire from the
Confederate States, promoters opened banks to finance trading in Indian cotton. With
large exposure to speculative ventures, most of the banks opened in India during that
period failed. The depositors lost money and lost interest in keeping deposits with
banks. Subsequently, banking in India remained the exclusive domain of Europeans
for next several decades until the beginning of the 20th century.
Foreign Banks too started to arrive, particularly in Calcutta, in the 1860s.The
Comptoire dEscompte de Paris opened a branch in Calcutta in 1860, and another in
Bombay in 1862; branches in Madras and Pondicherry, then a French colony,
followed. HSBC Established itself in Bengal in 1869. Calcutta was the most active
trading port in India, mainly due to the trade of the British Empire, and so became a
banking center.

The Bank of Bengal, which later became the State Bank of India.
The first entirely Indian joint stock bank was the Oudh Commercial Bank, established
in 1881 in Faizabad. It failed in 1958. The next was the Punjab National Bank,
established in Lahore in 1895, which has survived to the present and is now one of the
largest banks in India.

34

Around the turn of the 20th Century, the Indian economy was passing through a
relative period of stability. Around five decades had elapsed since the Indian Mutiny,
and the social, industrial and other infrastructure had improved. Indians had
established small banks, most of which served particular ethnic and religious
communities.
The Presidency banks dominated banking in India, but there were also exchange
banks and a number of Indian Joint Stock Banks. All these banks operated in different
segments of the economy. The exchange banks, mostly owned by European,
concentrated on financing foreign trade. Indian joint stock banks were generally
undercapitalized and lacked the experience and maturity to compete with the
presidency and exchange banks. This segmentation let Lord Curzon to observe,
In respect of banking it seems we are behind the times. We are like some old
fashioned sailing ship, divided by solid wooden bulkheads into separate and
cumbersome compartments.
The period between 1906 and 1911, saw the establishment of banks inspired by the
Swadeshi movement. The Swadeshi movement inspired local businessmen and
political figures to found banks of and for the Indian community. A number of banks
established then have arrived to the present such as Bank of India, Corporation Bank,
Indian Bank, Bank of Baroda, Canara Bank and Central Bank of India.
The fervor of Swadeshi movement lead to establishing of many private banks in
Dalshina Kannada and Udipi District which were iunified earlier and known by the
name South Canara (South Kannara) district. Four nationalized banks started in
this district and also a leading private sector bank. Hence undivided Dakshina
Kannada district is known as Cradle of Indian Banking.

35

36

COMPANY PROFILE
ICICI Prudential Asset Management Company Ltd. Is a joint venture between
ICICI Bank, Indias second largest commercial bank and a well known and trusted
name in the financial services in India, & Prudential Plc, one of the United Kingdoms
largest players in the financial services sector.
In a span of over 18 years since inception and just over 13 years of the Joint Venture,
the company has forged a position of preeminence as one of the largest Asset
Management Companys in the country, contributing significantly towards the growth
of the Indian mutual fund industry.
The company manages significant Mutual Fund Assets under Management (AUM), in
addition to our Portfolio Management Services (PMS) 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 Bank is Indias second largest bank with total ASSETs of Rs. 3,562.28 billion
(US$ 77 billion at December 31, 2014 and profit after tax Rs. 30.19 billion (US$
648.8 million) for the nine months ended December 31, 2014. The bank has a network
of 1,675 branches and about 4,883 ATMs 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, Honk Kong, Sri Lanka, Qatar and Dubai International Finance
Center and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. U.K Subsidiary has established
branches in Belgium and Germany.
ICICI Banks 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).

Corporate Profile
ICICI Bank is Indias second largest bank with total ASSETs of Rs. 3,562.28 billion
(US$ 77 billion) as on December 31, 2014.
Board Members
37

Mr. K. V. Kamath, Chairman

Mr. Sridar Iyengar
Mr. Homi R. Khusrokhan
Mr. Lakshmi.N. Mittal
Mr. Narendra Murkumbi
Dr. Anup. K. Pujari
Mr. Anupam Puri
Mr. M.S.Ramachandran
Mr. M.K. Sharma
Mr. V.Sridar
Mr. Prof. Marti. G. Subrahmanyam
Mr. V. Prem Watsa Managing Director & CEO
Mr. Sandeep Bakhshi, Deputy Managing Director
Mr. N.S. Kannan, Executive Director & CFO
Mr. Ramkumar, Executive Director.
Mr. K. V. Kamath is a mechanical engineer and did his management studies from the
Indian Institute of Management, Ahmedabad. He joined ICICI in 1971 and worked in
the areas of project finance, leasing, resources and corporate planning. IN 1988, he
joined the Asian Development Bank and spent several years in South East Asia Before
returning to ICICI Bank in 2002 following the merger of ICICI with ICICI Bank.
Under his leadership, the ICICI group transformed itself in to a diversified,
technology driven financial services group that has leadership positions across
banking, insurance and ASSET management in India, and an international presence.
He retired as Managing Director and CEO in April @009, and took up the position of
Non-Executive Chairman of ICICI Bank effective May 1, 2009. He was the President
of the Confederation of Indian Industry (CII) for 2008-2009. He was awarded the
Padma Bhushan by the President of India in May 2008. He was conferred the lifetime
Achievement Awards at the Financial Express Best Bank Awards 2008 and the NDTV
Profit Business Leadership Awards 2008; was named Businessman of the year by
Forbes Asia and The Economic Times, Business Leader of the Year in 2007;
Business Standards Banker of the Year and CNBC-TV18s Outstanding Business
Leader of the Year in 2006; Business Indias Businessman of the Year in 2005;
and CNBCs Asian Business Leader of the Year in 2001. He has been conferred
with honorary PhD by the Banaras Hindu University. He is a member of the Board of
the Institute of International Finance, a Director on the Board of Infosys Technologies
and a member of the Board of Governors of the Indian Institute of Management
Ahmedabad

38

Awards:
Retail

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 2012 for the third consecutive year.

Anup Bagchi, MD & CEO has been honoured with the Zee Business Industry
Newsmaker Award 2010 for his tremendous and unmatched contribution in the field

of finance.
Pankaj Pandy, Head-Research- ICICIdirect 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.

Frost and Sullivan 2009 Award for Customer Service Leadership.
ICICIdirect, the neighborhood financial superstore won the prestigious Franchise

India Service Retailer of the Year 2008 award.

ICICIdirect has also won the CNBC AWAAZ 2007 Consumer Award for the most

Preferred Brand of Financial Advisory Services.

Best Broker Web 18 Geniuses of the Web Awards 2007.
Franchisor of the year award 2009.
Retail concept of the year awards 200
INSTITUTIONAL

Vikash Mantri tops The Wall Street Journals Asias Best Analysts survey in the media

sector for 2010.

ICICI Securities is 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 (I-Sec) 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
AsiaMoney.

39

Technology

IDG Indias CIO Magazine has recognized ICICI Securities as a recipient of CIO 100

award in 2009, 2010 and 2011.

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

Enterprise Awards 2010.

Indian Banks Association Business Technology Awards for Best Online Trading
Platform in 2006 and 2007.
Special Category

Mr. Charanjit Attra, Chief Financial Officer (CFO), ICICI Securities Ltd was
conferred the CFO100 recognizing the Winning Edge in 2010 award by CFO
India. He won the award for the Winning Edge in cost Management category.
Legal
The information provided on this site is not intended for distribution to, or use by, any
person or entity in any jurisdiction or country where such distribution or use would be
contrary to law or regulation or which would subject ICICI Securities (I-Sec) or its
affiliates to any new or additional registration requirement within such jurisdiction or
country. Neither the information, nor any opinion contained in this site constitutes a
solicitation or offer by I-Sec or its affiliates to buy or sell securities, futures, options
or other financial instruments or provide any investment advice or service. or its
affiliates to any new or additional registration requirement within such jurisdiction or
country. Neither the information, nor any opinion contained in this site constitutes a
solicitation or offer by I-Sec or its affiliates to buy or sell securities, futures, options
or other financial instruments or provide any investment advice or service.
Disclaimer of Warranty and limitation?
The information on this site is provided on AS IS basis. I-Sec does not warrant the
accuracy of the information given herein, either expressly or impliedily, for any
particular purpose and expressly diclaims any warranties of merchantability of
suitability of any particular purpose. Although the information provided to you on this
is obtained or compiled from the sources we believe to be accurate, I-Sec does not

40

guarantee the accuracy, completeness or validity of any information made available to

you for any purpose.
Neither I-Sec, nor any of its affilities, directors, officers or employees, will be liable
or have any kind for any loss or damage that you incur in the event of any failure or
interruption of this site, or resulting from the act or omission of any other party
involved in making this site or data contained there in available to you, or from any
other cause relating to your access to inability to access, or use of the site or these
material.
Whether or not the circumstances giving rise to such cause may have been within the
control of I-Sec or any of vendor providing software or services support. In no event
will I-Sec be liable to you for any kind (regardless of the legal theory on which the
claim is based) even if I- sec or any other party have been informed of the possibility
thereof.
Copyright or Other Notices
If you download any information or data or software from this website, you agree that
you will not copy it or remove or obscure any copyright or their notices or legends
contained in any such information.

Use of Links
Should you leave this site via a link contained herein, and view content that is not
provided by I-Sec, you shall do so at your own risk. I-Sec makes no guarantees or
representations as to, and shall have no liability for, any electronic content delivered
by any third party, including, the appropriateness, subject matter, quality or timeliness
of any content.
Research
The information contained in the Research Reports uploaded herein has been obtained
from various sources; we do not guarantee its authenticity or validity or completeness.
Neither any

information nor any opinions expressed constitute an offer, or an

41

invitation to make an offer, to buy or sell any securities or any derivative instruments
related to such securities. Investors should take financial advice with respect to the
suitability of investing their monies in any securities discussed or recommended in on
this website and should understand that statements regarding future prospects may not
materialize. Investors should note that each securitys price or value may rise or fakk
and accordingly, investors may even receive the amounts, which are less than
originally invested. Past performance. Please carefully read the detailed disclosures
given at the end of every research report.
Contact customer care: Email: customercare@icicisecurities.com
Compliance officer:
Tel:+91-22-22882460/70
Email: complianceofficer@icicisecurities.com
SEBI Registration details:
NSE SEBI Registration Number Capital Market: - INB 230773037
BSE SEBI Registration Number Capital Market: - INB 011286854
NSE SEBI Registration Number Derivatives: - INF 230773037
NSE SEBI Registration Number Currency Derivatives: - INE 230773037
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
customers savings, 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
42

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 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.
ICICI Securities has set-up neighbourhood financial stores which offer a variety of
financial products and services under one roof. It is a one-stop shop that facilitates
existing and potential customers to speak to our team and understand their financial
plans and goals. ICICI Securities has 250 stores across 66 cities in India.
Another unique concept called the ICICIdirect Money Kitchen was launched in late
2009. An extension of the superstore model, the money kitchen is an innovative
financial store where visitors can create their profiles to not only analyze their
investment strategy by using various financial tools but also monitor it from time to
time.
ICICIdirect has also started financial planning services at these stores to enable
customers to maximize their returns and plan for their future. Customized financial
plans can be created for customers by dedicated Relationship managers who will
understand the customers requirements and future goals.
Based on given information, the Relationship Managers works on creating a
comprehensive and easy-to-read financial plan. This enables ICICIdirect to move
from just a transactional based relationship to a meaningful and value-added longterm relationship with our customers ICICIdirect services and offerings evolves
according to the customers ever changing requirement and goals.
Customers can walk-in to the financial superstores for products like ICICIdirect 3-in1 online trading account, equities, mutual funds, IPO, Life and General Insurance,
43

Fixed Deposits and many other financial products. The stores also conduct periodic
training sessions on markets and demo sessions of the trading website.
ICICI Securities understands the need for insightful research to make the right
investment decision. An independent equity research team provides strong and timely
updates to ensure that customer can avail of market opportunities.
The research team focuses on large cap as well as small and mid-cap. Large cap
companies provide an overview of industry environments, while small and mid-cap
companies are chosen bottom-up, providing a unique perspective to a generally
under-researched end of the market. The focus is on identifying companies, which we
believe are likely to generate wealth for investors on a sustained basis through indepth fundamental research.
ICICI group cater to the entire gamut of investment and return horizon requirements
of an investor through our flagship offerings like Detailed Company Report, Pick of
the week, Model Portfolio, Stock on the Move, Daily & Weekly derivatives, Intra-day
calls, Daily, Weekly & Monthly Technical with a regular update on the performance
of our calls.
The Active Trader service is an innovative offering from ICICI Securities which is
ideal for those who are truly born traders.
As a customer of the Active Trader Service, ICICI group assure customers truly
personalized service with a dedicated relationship manager assigned to ones account.
Company has also set up a special research team who is focused on helping ypu
achieve your targets. The research team has developed a robust set of research
products to help one make informed investment decisions, depending on ones risk
profile, by analyzing derivative market cues and other news as well as market and
corporate information.
Some of the research products which company offers are as follows: Positional Calls,
Technical Picks, Momentum Picks, and Roll over Monitor, Open Interest Insight,
Special Situation Arbitrage, and Pair Calls.

44

The Equity Advisory Group (EAG) is team of advisors dedicated to providing

customers personlised advisory services. It is aimed at maximizing the customers
investment returns and keeping him updated on the stock markets and the economy.

A Personal Equity Advisor will closely monitor the clients portfolio and keep him
updated on the latest happenings in equity market with the help of our fundamental
and technical research.
EAG Service is customized according to the clients risk appetite and investment
horizon. A personal equity advisor, backed by research team, provides the customer
with timely advice on the stock market.
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 Customers 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.
The attempt is to bring world class investment products to customers through over 15
centers of ICICIdirect.
ICICI Securities is the member of NSE & BSE and registered as Broker. It provides
business opportunity to entrepreneurs by registering them as Sub-Brokers / Authorised
Person. ICICI Securities provides trading terminals through which the Sub-Broker can
offer a range of financial products like Equities, Derivatives, Currency Derivatives,
IPO, MF, Bonds, and Fixed Deposits etc.
Another way to get associated with ICICI Securities, As an Independent financial
Advisor and gain access to a wide range of financial products like MF, IPOs, Bonds,
Corporate Fixed Deposits.
One can also be associated as an Investment Advisor to sell a range of financial
products like IPO, Bonds, Fixed Deposits, etc. to their set of customers. In addition,
45

they can also sell ASSET products like Home Loans, Education Loans, etc. to the
customers.
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.
ICICI Securities engagements include Equity Capital Markets, Private Equity
Intermediation and public Issuance of Debt.
A team of professionals, which is organized by sector help clients assess their
business models and advises them on specific financing alternatives. The companys
advice is based on the specific circumstances and strategic considerations relevant to
the client. ICICI Securities is a SEBI registered Category 1 Merchant Banker.

Key Recent Deals

In FY2010, ICICI Securities has helped companies raise US$1.86 billion through
QIPs and IPOs (source: Prime Database).
Some of the recent transactions for FY2010 and FY2011 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.
46

Nitesh Estates: In 2010, Book Running Lead Manager, Rs. 4.1 bn.
Shree Ganesh Jewellery House: In 2010, Book Running Lead Manager, Rs. 3.7 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.
JSW Energy: In 2009, Book Running Lead Manager to the IPO of Rs. 27 bn.
Godrej Properties: In 2009, Book Running Lead Manager, Rs. 4.7 bn.

Indian Depository Receipts (IDRs)

Standard Chartered: In 2010, Syndicate Member first ever issuance of an IDR, Rs.
24.8 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.
Public Issue of Debt

Shriram Transport Finance Company: In 2010 & 2009, Lead Manager, Rs 15 bn.
L & T Infrastructure Finance Company: In 2010, Lead Manager, Rs. 2.6 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.
3I Infotech: In 2010, Book Running Lead Manager, Rs. 1.8 bn.
Texmaco: In 2009, Sole Book Running Lead Manager, Rs. 1.7 bn.
Adhunik Metaliks: In 2009, Book Running Lead Manager, Rs. 1.4 bn.

47

Rights Issues

Adani Enterprises: In 2010, Lead Manager, Rs. 14.8bn.

IBN18 Broadcast: In 2010, Sole Lead Manager, Rs. 5.1 bn.
Television Eighteen India: In 2009, Lead Manager, Rs. 5.04 bn.
Informedia18: In 2009, Lead Manager, Rs. 1 bn open offer.
Fame India: In 2010, Sole manager to the offer, Rs. 1.8 bn.
Zenotech Laboratories: In 2010, Sole Manager to the offer, Rs. 1.1 bn.
OCL Iron & Steel: IN 2009, Sole Manager to the offer, Rs. 0.56 bn.
Delisting

Sulzer India: In 2010, Sole Manager, Rs. 0.81 bn.

Lotte India Corp: In 2009, Sole Manager, Rs. 0.4 bn.
Avery India: In 2009, Sole Manager, Rs. 0.29 bn.
Landmark Transactions

Tata Motors: First Rights Issue of shares with Differential Voting Rights.
Tata Capital: First public issue of secured Non Convertible Debentures (NCD).
Daiichi Sankyo Co: Sole managers to the one of the largest open offers of Rs. 68.2

bn.
Bharati Airtel: First 100% Book-Built IPO in India.
HP: First delisting transaction in Indian markets using the Reverse Book-building

mechanism.
Punjab National Bank: Initiated the book Building mechanism for Public Sector

Banks.
NTPC: First FPO under alternate book building (French Auction) route.
Network 18: First Rights Issue done on the basis of Partly Convertible Cumulative

Preference Shares with a three in one structure.

Television Eighteen: First IPO of a New Channel.
Maruti Suzuki: First Government of India Divestment through IPO.
Sify: Sponsored ADR of an unlisted Indian company.
Man Industries (India): the first Indian offering on the Dubai Financial Exchange to

tap liquidity in the Middle East.

Infoedge India (Naukri.com): First IPO of a pure-play Internet Company in India

48

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 execution capabilities
of actionable ideas to clients which have results in good relationships across
geographics.
ICICI Securities enjoys the first mover and market leader advantage in the derivatives
segment and offers the entire spectrum from set-uo 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 every year. The
equity group
acts as a bridge for institutional investors and corporate clients with the markets.
ICICI Securities is the first domestic Growth (ICICI Foundation) was founded by the
ICICI Group in early 2008 to give focus to its efforts to promote inclusive growth
amongst low-income Indian households.

ICICI Group believe fundamental challenge is to create a just society- where

everyone has equal opportunity to develop and grow. Towards this end, ICICI
Foundation is committed to making Indias economic growth more inclusive,
allowing every individual to participate in and benefit from the growth process.
Group holds a set of core beliefs and values that defines its pathway towards inclusive
growth and guides its five strategic partnerships.

49

Vision
Our vision is a world free of poverty in which every individual has the freedom and
power to create and sustain a just society in which to live.
Mission
Company mission is to create and support strong independent organizations which
work towards empowering the poor to participate in and benefit from the Indian
growth process; as a key partner in Indias economic growth in all sectors of the
nations economy. To give focus to its efforts to promote inclusive growth amongst
low-income Indian households, the ICICI Group founded ICICI Foundation for
Inclusive Growth in Jan 2008.
The Foundations of ICICI Groups approach towards human and social development
were established with the Social Initiatives Group (SIG), a non-profit resource group
within ICICI Bank, in 2000.
ICICI Foundation for Inclusive Growth (ICICI Foundation) has been set up as a
public charitable trust registered of the Trust Deed with the Sub-Registrars Office at
Chennai on Jan 4, 2008.
The application for registration of the Foundation under section 12AA of the Income
tax act, 1961 (the ACT) was filed on Feb 7, 2008 and the application under section
80G of the Act was filed on Feb 14, 2008. Subsequently, ICICI Foundation was
registered as a PUBLIC CHARITABLE TRUST under Section 12AA of the Act
with effect from Feb 7, 2008. Further, ICICI Foundation received approval under
Section 80G(5)(vi) of the ACT on Mar 19, 2008. This approval is valid in respect of
donation received by ICICI Foundation from Feb 14, 2008 to Mar 31, 2009.
Accordingly, ICICI Bank and group Companies will be eligible to get a deduction
under Section 80G on donations made during this period.
ICICI Foundation has also obtained its Permanent Account Number (PAN) and Tax
deduction Account Number (TAN).

50

Funds Flow 2008-2009

ICICI Foundation received Rs. 617.80 million from the following sources as grants:
(Jan 4, 2008 to March 31, 2009) (Spanning two financial years)
Source (Jan 4, 2008 March 31, 2009)

Amount (Rs.

Million)
ICICI Bank
500.00
ICICI Prudential Life Insurance
67.72
ICICI Lombard General Insurance
17.12
ICICI Securities
14.98
ICICI Securities PD
6.99
ICICI Home Finance
1.99
ICICI Venture
9.0
Total
617.80
ICICI Foundation also incurred total expenses of Rs. 1.25 million during this period
and had a fund balance of Rs. 61.55 million as on March 31, 2009. Disbursements
(Jan 4, 2008 to Mar 31, 2009)
Grant Beneficiaries (Jan 4, 2008 Mar 31, 2009)

Amount (Rs.
Million)

ICICI Foundation Programs

ICICI Center for Child Health and Nutrition
IFMR Finance Foundation
Environmentally Sustainable Finance
CSO Partners
CARE (Policy Unit)
Strategy and Advisory Group
ICICI Group Corporate Social Responsibility Programs
Read to Lead
MITRA (ICICI Fellows Program)
Care (Disaster Management Unit)
Range De
Total

150.00
200.00
20.00
50.00
5.00
20.00
25.00
55.00
5.00
25.00
555.00

Grant Beneficiaries for 2008-2009

ICICI Center for Child Health and Nutrition (ICCHN)
The grant of Rs. 150.00 million was provided to ICCHN by way of corpus support
and for pursuing various projects consistent with its mission.
51

IFMR Finance Foundation (IFF)

The grant of Rs. 200.00 million was provided to IFMR Finance Foundation by way of
corpus support and for pursuing various projects consistent with its mission.
Environmentally Sustainable Finance (ESF)
The grant of Rs. 20.0 million was provided to ESF for their collaboration work with
Rural Energy Network Enterprise (RENE) on sustainable energy and envirom\nment
projects benefitting remote rural end users. The proposed projects will promote
developing tools and driving innovation to scale rural energy for remote rural users.
CSO (Policy Unit)
The grant of Rs. 50.00 million was provided to CSO Partners by way of corpus
support and for pursuing various projects consistent with its mission.
CARE (Policy Unit)
A grant of Rs. 5.00 million was provided to CARE, an Indian NGO that is closely
affiliated with CARE (USA), to create a policy unit in Delhi. Learning from Cares
work in India and world-wide as well as from the work of ICICI Foundation and its
partners, the unit will serve as a platform to engage the government and policymakers
in an effort to bring about required policy changes in areas such as maternal and child
health.

Strategy and Advisory Group (SAG)

This is a Charitable Foundations in India and world-wide struggle to fully develop the
strategy formulation, knowledge management and impact assessment dimensions of
their work. A grant of Rs. 20.00 million was provided to Strategy and Advisory Group
(SAG), a team at Center for Development Finance that provides strategic advisory
services to clients in the development sector, to develop these functions and to offer
their expertise to foundations in general, including ICICI Foundation.
ICICI Group Corporate Social Responsibility Programs

52

Read to lead is an initiative of ICICI Bank to facilitate elementary education for

disadvantaged children in the age group of 6-13 years. An amount of Rs. 25.00
million has thus far been disbursed to 100,000 children through 30 NGOs. The
balance amount of Rs. 75.00 million is planned to be disbursed during the period
2009-2010.
MITRA (ICICI Fellows Program)
MITRA is an affiliate of CSO Partners that is focused on addressing the challenge of
human resources for civil society organizations (CSOs). In partnership with CSO
Partners and MITRA, ICICI Foundation proposes to launch an ICICI Fellows
Program. An amount of Rs. 55.00 million has been disbursed to MITRA for
developing and launching the program over the period 2009-2010.
CARE (Disaster Management Unit)
A grant of Rs. 5.00 million has been given to Care in India to enable it to prepare for
any future disasters that may strike and respond immediately with the required relief
efforts.
Rang De (Micro Enterprise Development)
Rang De, an affiliate of CSO Partners, has partnered with ICICI Venture to roll out
finds for micro enterprise development in rural and semi-urban locations. The amount
of Rs. 25.00 million that has been disbursed to them will support micro enterprises to
the extent of Rs. 15.00 million and the balance amount of Rs. 10.0 million will go
towards meeting their expenses to build the platform.

STATE BANK OF INDIA

SBI MAGNUM EQUITY FUND
OBJECTIVE
To provide the investors maximum growth opportunity through equity investments in
stocks of growth oriented sectors of the economy. There are five sub funds
53

dedicated

to

specific

investment

themes

viz.

Information

Technology,

Pharmaceuticals, FMCG, Contrarian (investment in stocks currently out of favour)

and Emerging Business Fund would be to participate

in the growth potential

presented by various companies that are considered emergent and have export
potential presented by various companies that are considered emergent and have
export orientation/ outsourcing opportunities or are globally competitive by investing
in the stocks representing such companies. The fund may also evaluate emerging
business with growth potential and domestic focus.
Fund Features
Rama Iyer
Type of Scheme

Open Ended

Fund Mnager

Srinivasan

Nature

Equity

SIP

Option

Growth

STP

Inception Date

Sep 17, 2004

SWP

Face Value(Rs/units)

10
0 as on Oct 31,

Expense ratio (%)

Portfolio turnover

Fund Size in Rs.Cr.

2011

Ratio(%)

Last Dividend Declared

Minimum Investment(Rs)
Purchase Redemtions
NAV Calculation
Entry Load

NA
2000
Daily
Daily
Entry Load is 0%
If redeemed bet. 0 year to I year: Exit load

Exit Load
Increase/ Decrease in fund size

is %

since Sept30, 2011 (Rs.in crore)

0
54

2.31
65

SBI Mutual fund 191, Maker

Mutual Fund

Tower E, Cuffe Parade Mumbai

Tel: 22180221, 22180227
SBI Funds Management Private

ASSET Management

Ltd. 191, Maker Tower E, Cuffe

Company

Parade Mumbai - 400005 Tel:

22180221, 221800227
Computer Age Management

Registrar

Services Private Limited A&B,

Lakshmi Bhavan 609, Anna Salai
Chennai.

55

CHAPTER-4
DATA ANALYSIS & PRESENTATION

NET ASSET VALUE

Latest NAV
Benchmark Index - BSE 500
52-Week
52-Week low

42.80 as on Dec 7, 2012.

6236.09 as on Jul 25, 2012
46.74 as on Jul 25, 2012
35.04 as on Feb 10, 2012

56

100
90
80
70
60
50

40

w
n

30
20
10
0
q1

q2

q3

q4

INTERPRETATION
The above graph indicates that the Equity Fund Net ASSET value from the 1 st week
of November is almost performing same but in 4 th week of Nov the performance of
growth has drastically changed when compared to dividends, and again the
performance showed is similar in rest of the weeks. Because of declaring Dividends
frequently, the performance of dividend always shows less when compared with
others.

ICICI BANK
ICICI Limited was established in 1955 by the World Bank, the Government of India
and the Indian Industry, for the promotion of industrial development in India by
giving project and corporate and corporate finance to the industries in India.

57

ICICI Bank has grown from a development bank to a financial conglomerate and has
become one of the largest public financial institutions in India. ICICI Bank has
financed all the major sectors of the economy, covering 6,848 companies and 16,851
projects. As of March 31, 2011, ICICI had disbursed a total of Rs.1,13,070 crores,
since inception.
Fund Facts
Net ASSET Value
Latest NAV
Benchmark Index - BSE 500
52-Week
52-Week low

45.22 as on Dec 8, 2014.

3,332.08 as on Dec 6, 2012
49.11 as on Jul 25, 2012
42.79 as on Feb 10,2012

100
80
60

40

w
n

20
0
q1

q2

q3

q4

INTERPRETATION
From the above graph it indicates that the NAVs are performing similar but in the
month of November both of them have declined . It had drastically fallen in the month
of the Nov. From the 1st week of Dec to 1st week of Nov both have increased and the
performance showed is well. Because of declaring Dividends frequently, the
performance of Dividend always shows less when compared with others.
HOUSING DEVELOPMENT FINANCIAL CORPORATION
FUND FACTS
Objective
The plan will invest between 80-90 percent of the money in 30 scripts comprising the
SENSEX in the same proportion. The balance will be invested in the other non-index
scrips.
58

FUND FEATURES
Type of scheme

Open Ended

Fund Manager

Vinay Kulkarni

Nature

Equity

SIP

Option

Growth

STP

Inception Date
Face

Jul 17,2002

SWP

32.161

Expense Ratio(%)

1.00

0 as on Nov 30,

Portfolio Turnover

2011

Ratio(%)

Value(Rs/Unit)
Fund Size in
Rs.Cr

Last Dividend Declared

NA

Minimum Investment (Rs)

5000

Purchase Redemptions

Daily

NAV Calculation

Daily

Entry Load

Entry Load is o%

Exit Load

Exit Load is 0%

Increase/Decrease in Fund Size

since Oct 31, 2011(Rs. In crores)

0
HDFC Mutual Fund Ramon
House, 3rd floor, H.T.Parekh

Mutual Fund

Marg 169, Backbay

Reclamation, Churchgate
Mumbai

ASSET Management Company

HDFC ASSET Management

Company Limited Ramon
House, 3 rd floor, H.T.Parekh
Marg 169, Blackbay
Reclamation, Churchgate
59

42.52

Mumbai - 400020,Tel663163333

Registrar

A&B, Lakshmi Bhavan 609,

Anna Salai Chennai

Net ASSET Value

Latest NAV
Benchmark Index - BSE

203.75 as on Dec 9, 2014

Sensex
52-Week High
52-Week low

16,213.46 as on Dec 9, 2014

246.15 as on Jan 3, 2014
197.43 as on Nov 23, 2012
60

100
90
80
70
60

50

40

30
20
10
0
q1

q2

q3

q4

INTERPRETATION
The above graph indicates that the equity fund Net Asset Value from the 2 nd week of
November is almost performing same but in 4 th week of Nov the performance of
growth has drastically changed when compared to dividends, and again the
performance showed is similar in rest of weeks. Because of declaring Dividends
frequently, the performance of Dividend always shows less when compared with
others.

Tata Mutual Fund

Fund Facts
Objective
Aim to invest in equity and debt oriented securities so as to give investor balanced
returns.
Fund Features

61

Murthy Nagarajan,

Type of scheme

Open Ended

Fund Manager

Nature

Equity & Debt

SIP

M.Venu Gopal

Option

Growth

STP

Inception Date
Face

Oct 8,1995

SWP

10

Expense Ratio(%)

2.33

0 as on Nov 30,

Portfolio Turnover

2011

Ratio(%)

Value(Rs/Unit)
Fund Size in
Rs.Cr

Last Dividend Declared

Minimum Investment(Rs)
Purchase Redemptions
NAV Calculation
Entry Load

12.5% s on Sep 10, 2003

5000
Daily
Daily
Entry load is 0%
If redeemed bet. 0 days to 365

Exit Load
Increase/ Decrease in Fund

days: Exit load is 1%

Size since Oct 31, 2011 (Rs.in

crores)

0
Tata Mutual Fund Mafatlal
Centre, 9th floor, Nariman Point,

Mutual Fund

Mumbai, Telephone:-66578282
Tata ASSET Management Private
Limited Mafatlal Centre, 9 th

ASSET Management

Floor, Nariman Point, Mumbai -

Company

400021 Tel:
66578282
Computer Age Management
Services Private Limited A&B,
Lakshmi Bhavan 609, Anna Salai

Register

Chennai.

62

66

Net ASSET Value

Latest NAV
Benchmark Index Crisil

77.61 as on Dec 9, 2012

Balanced Fund Index

52-Week High
52-Week low

3343.06 as on Dec 7, 2012

86.17 as on Jan 3, 2012
76.29 as on Feb 10, 2012

63

100
90
80
70
60

50

40

30
20
10
0
q1

q2

q3

q4

INTERPRETATION
From the above graph it indicates that the NAVs are performing similar but in the
month of November both of them have declined. It had drastically fallen in the month
of Nov. From the 1 st week of December to Ist week of Nov both have increased and
the performance showed is well. Because of declaring Dividends frequently, the
performance of Dividend always shows less when compared with others.

EQUITY FUND
An open-ended equity fund investing a minimum of 80% in equity related instrument.
It aims at enabling members to avail tax under section 88 of the IT Act and proved
them with the benefits of growth.
Performance as on February 28, 2012
Performance comparison with Bench Mark Index
Compounded Annualized

NAV
64

BSE(SENSEX)

Year

Over last one year

31.20%

18.46%

2012

Over last one year

37.57%

23.50%

2012

Over last one year

14.65%

3.54%

2012

Since Inception

22.80%

7.23%

2012

40.00%
35.00%
30.00%
25.00%
20.00%
15.00%
10.00%
5.00%
0.00%
NAV
BSE(SENSEX)

BALANCED FUND
An open-ended balanced fund investing between 40% to 60% in equity/equity related
securities and the balanced in debt(fixed income securities) with a view to generate
regular income together with capital appreciation.
Performance as on February 28, 2012
Returns

NAV

Crisil Balanced Fund

Index

65

Year

Over last 1 year

15.56%

9.77%

2012

Since inception

26.88%

26.23%

2012

30.00%
25.00%
20.00%
15.00%
Over last 1 year
Since inception

10.00%
5.00%
0.00%
NAV

Crisil Balanced Fund Index

MONTHLY INCOME FUND:

An open-ended debt oriented fund investing a minimum of 90% in Debt and G-Sec
and a minimum of 10% in equity instruments. The fund aims to distribute income
periodically. Best suited to the investors who are looking for Regular low level of risk
appetite. Also suitable to meet the requirements of corporate and institutional
investors with surplus funds.

66

Performance as on February 28, 2012

Compounded Annualized

NAV

BSE(SENSEX)

Year

One year

2.86%

3.62%

2012

Since Inception

10.20%

7.00%

2012

12.00%
10.00%
8.00%
6.00%
One year
Since Inception

4.00%
2.00%
0.00%
NAV

BSE(SENSEX)

SCHEMES IN JM MUTUAL FUND

1.
2.
3.
4.
5.
6.
7.
8.
9.

JM Equity Fund
JM Balanced Fund
JM Basic Fun
JM Auto Sector Fund
JM Healthcare Sector Fund
JM High Liquidity Fund
JM Floater Fund
JMG Sec Fund
JM Short Term Fund

67

10.JM Income Fund

11.JMMIP Fund
12.JM FMP Fund
JM Equity & Derivative Fund

JM MUTUAL FUND EQUITY FUND

Years

Growth

BSE SENSEX

Plan

1 Year

25.25

16.14

3 Year

38.04

22.85

5 Year

3.13

5.36

68

40
35
30
25
20
Growth Plan

15

BSE SENSEX

10
5
0
1 Year

3 Year

5 Year

Interpretation
Above Table we understand that JM Mutual Fund equity shows the rates of the
growth plan and BSE sensex performance should be clearly specified in the graph.

BALANCED FUND
Period

Growth

CBFI

Plan

1 Year

12.83

8.25

3 Year

18.67

16.21

5 Year

14.32

NA

Inception

14.33

NA
69

20
18
16
14
12
10

Growth Plan

CBFI

6
4
2
0
1 Year

3 Year

5 Year

Interpretation
Above Table we understand that balanced fund equity shows the rates of the growth
plan and CBFI performance should be clearly specified in the graph.

JM MONTHLY INCOME PLAN

Performance as on March 31, 2012
Period

Growth

CBFI

Plan

1 Month

.32

-0.21

3 Month

.32

.94

6 Month

3.69

3.92
70

1 Year

4.02

2.37

Inception

6.87

6.81

8
7
6
5
4
Growth Plan

CBFI

2
1
0
-1

1 Month

3 Month

6 Month

1 Year

Inception

Interpretation
Above Table we understand that JM monthly plan shows the rates of the growth plan
and CMIPN performance should be clearly specified in the graph.

JM HIGH LIQUIDITY FUND

Performance as on March 31, 2012
Growth
Period
1 Month
3 Month
6 Month
1 Year
3 Year
5 Year

Plan
4.58
4.57
4.52
4.37
5.36
6.76

CLFI
4.40
4.54
4.44
4.17
4.85
NA
71

Inception

8.72

NA

6
5
4
3
Growth Plan
CLFI

2
1
0
1 Month

3 Month

6 Month

1 Year

3 Year

INTERPRETATION
Above Table we understand that JM high liquidity fund equity shows the rates of the
growth plan and CLFI performance should be clearly specified in the graph.

JM FLOATER FUND
Performance as on March 31, 2012
Period
1 Month
3 Month
6 Month
1 Year
Inception

Long
TermPlan
0.43
1.28
2.55
4.07
3.87

Short
TermPlan
0.45
1.3
2.64
5.02
5.05

72

CLFI
0.37
1.12
2.21
4.17
4.14

6
5
4
3
Long TermPlan
Short TermPlan

CLFI
1
0
1 Month 3 Month 6 Month

1 Year

Inception

INTERPRETATION
Above Table we understand that JM floater fund equity shows the rates of the growth
plan and CLFI performance should be clearly specified in the graph.

SCHEMES IN HDFC MUTUAL FUND

1.HDFC GROWTH FUND
2.HDFC EQUITY FUND
3.HDFC TOP 200 FUND
4.HDFC CAPITAL FUND BUILDER FUND
5.HDFC CORE & SATELLITE FUND
6.HDFC INDEX FUND
7.HDFC CHILDRENS GIFT FUND

73

8.HDFC BALANCED FUND

9.HDFC PRUDENCE FUND
10.HDFC LONG TERM ADVANTAGE FUND
11.HDFC TAX SAVER
12.HDFC MF MONTHLY INCOME PLAN
13.HDFC MULTIPLE YIELD FUND
14.HDFC INCOME FUND
15.HDFC HIGH INTREST FUND
16.HDFC SHORT TERM PLAN
17.HDFC LIQUID FUND
18.HDFC CASH MANAGEMENT FUND.

HDFC EQUITY FUND

Performance as on February 28, 2012
Period
Last 334 days
Last 1 year(367 days)
Last 3 years(109 days)
Last 5 years(1827 days)
Last 10 years(3635 days)
Since 10 years(3711
days)

NAV per

Return 5%

Unit
51.598
51
21.19
27.57
9.16
10.000

74

Benchmar

33.13
34.48
47.95
20.01
22.3

k
25.38
26.49
33.49
3.23
8.17

20.87

6.39

60
50
40
30
20
10
NAV per Unit

Return 5%
Benchmark

INTERPRETATION
Above Table we understand that Balanced Fund Equity shows the rates of the NAV
per unit and Benchmark performance should be clearly specified in the graph.

LIQUID FUND
Performance as on February 28, 2012
Period
Last 334 days
Last 1 year(365 days)
Last 3 years(1096 days)
Since 10 years(3711
days)

NAV per
Unit
12.585
12.5379
11.2092
10.0000

75

Return %

Benchmark %

4.12
4.49
5.34

3.78
4.13
NA

6.38

NA

14
12
10
8
6
4
2
0

NAV per Unit

Return %

INTERPRETATION
Above Table we understand that Liquid Fund Equity shows the rates of the NAV per
unit and Benchmark performance should be clearly specified in the graph.

76

CHAPTER-5
FINDINGS, SUGGESTIONS & CONCLUSION

77

FINDINGS
1.From the table 1 (i.e) SBI bank we can see that both Dividend and growth are
similar to each other, where as growth has been increased in the 2nd week of Dec.
2.In HDFC bank table we can see that growth has performed well when compared to
dividends. There was a slight fluctuation in the values of dividends and growth.
3.In TATA table we can see that performance of growth was good. The dividends was
constant in their values. During the first week of DEC the NAV values of both
Dividends and Growth were high.
4. When we see ICICI bank both the Dividends and Growth are equal or similar to
each other there is no change in them. In the month of Feb it raised in the first week
but it had a drastic fall in all the following weeks.
5.When we see HDFC bank here again growth has been performed well when we
compare to dividends. This increase in the value has been reached to certain extent
and it has been declined in last week of Feb.
6.If we compare Nationalised and Corporate banks we can see that corporate banks
have performed well during these 3 months.
7. Nationalisedd banks performed well up to certain extent and it values were
declining further. This decline may cause due to declaration of any dividends in those
banks and so it was showing low values.
8.In Nationalized banks we can see internally in Dividends SBI bank has performed
well and if we see Growth ICICI bank has performed well.
9.In corporate banks we can see internally in Dividends and Growth HDFC bank has
performed relatively well when compare to other banks. Both the values are high in
this bank. It had reached to a maximum height.
10.So its better for investors to invest in corporate sectors rather than investing in
Nationalized sector which gives them maximum number of return of their investment.

78

SUGGESTIONS
These are the few exact as regards investment in MFs taken from the book with
Marketing for the 90s given by the Wall Street. Check your letter of offer of funds
prospectus to guard yourselves against any hidden fees.
Ensure that the funds track record is same as that of the current management.
Avoid mutual funds that charge exit fees at the back end door(fees charged by MF
from the unit holders at the time to redemption of the units.)
Buy the funds with no sale charged loads.(a load is a charge by the fund when
investor buys it is called the entry load or when he sells is called the exit load)
If the charge is heavy by the mutual fund to discourage the investors from taking short
positions in the funds units because too many investors sell their units at a time then
the fund has to sell its holdings to meet the obligations that yield into vital of the fines
over all return. Most short funds like guilt funds (these are the funds which can be
invested only in government securities and treasury bills thus the investors have an
opportunity to buy risk free securities). These funds yield a better return than a money
market fund. It is good for the investors who desire safety of principal amount. Money
market funds (these funds in views in money market instruments such as treasury
bills, govt.bonds, certificates of bank deposits, commercial deposits.) They charge no
loads, how ever loads are limited by SEBI to 7%.
Check funds performance in bear as well as the bull market.
Guard fund risk by checking its portfolio for diversification volatility.

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CONCLUSION
1.Corporate sectors provide good services if we see through customer point of view.
They are very caring to the customer.
2.With the increase in infrastructure, technology, Introduction of various schemes and
services, online trading its clear that any one wants to invest will surely invest in
corporate bans.
3.Now u can see most of them are opening their account in corporate banks instead of
nationalized banks this is due to extra benefit ans services which they are getting from
that sector.

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BIBLIOGRAPHY
Books References:
Fischer and Jordan, security Analysis and Portfolio Management:, person education
india,1995.
V.K. Ballad investment decision
Robbins security Analysis and portfolios management
WEBSITES
www.mutualfundsindia.com
www.reliancemutual.com
www.sbimf.com
www.uti.com
www.moneycontrol.com

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