Icici Prudential

CONTENTS
Sr. No
Particulars
*
*
*
1
Preface
Acknowledgment
Declaration
Objective of the Study
2
3
Executive Summary
Company Profile
(A) History
(B) Owners
(C) Products/ Services
(1) Mutual fund
(2) ICICI products
(D) Trends/current scenario
Competitors detail
SWOT analysis
Industry detail
Organizational Study
Marketing
Operation
Finance
HR
Research
(A) Comparison chart
(B) Comparative analysis
(C)risk return payoff matrix
(D) Finding & Conclusions
Annexure
Branch Offices
List of Table & Figure
Appendix
Glossary
Bibliography
4
5
6
7
9
10
Page no
V
VI
VII
1
2
3
5
8
10
30
36
39
45
47
49
55
58
63
67
69
70
74
81
86
87
88
89
89
96
OBJECTIVES OF THE STUDY

Nowadays, each and every organization aims to earn profit so the profit centered
approach is one of the key factors in the banking. Since, the all the activities of the
financial institutions have become an area of profit center. So it is the challengeable task
for the entire concern department that how the efficiency this can be done under efficient
& reliable management.
Financial Institutions in India are undergoing a process of transformation for

enhancing efficiency, productivity and profitability. The full implications of the
transformation are yet to be unfolded.
So my main aim of this report is to highlight "ORGANIZATION" OF THE
ICICI PRUDENTIAL ASSET MANAGEMENT CO. PVT.LTD.
Second objective of the project report is to learn the performance of the Financial
Institutions in the global economy and in the state economy, person's economy.
To measure its growth and progress.
To know it's all financial services and schemes.
To unfold all it's aspects regarding each and every department and products.
To understand their strategies, rules & regulations.
To evaluate it's past performance, current\present performance & future
performance.
To know the actual workings of different departments & its policies.
EXECUTIVE SUMMARY
The economy is highly influenced by the Financial System of the country. The Indian
Financial System has been broadly divided into two segments: the organized and the
unorganized. An investor has a wide array of investment avenues available. Economic
well being in the long run depends significantly on how wisely he invests.
For todays complex financial scenario a Mutual Fund is the ideal investment option.
Markets for other investment avenues have become information driven. The Mutual
Fund Industry in India began with the setting up of the Unit Trust of India (UTI) in 1964
by the Government of India. Ever since then this industry has witnessed numerous
changes and growth. In 1987 public sector banks and insurance companies were
permitted to set up mutual funds. Securities Exchange Board of India (SEBI) formulated
the Mutual Fund (Regulation) 1993, which for the first time established a comprehensive
regulatory framework for the mutual fund industry. Since the private and joint sectors
and the share of the private players have set up then several mutual funds has risen
rapidly.
When investors are confronted with an astounding range of products, from traditional
bank deposits to downright shady money-multiplier schemes, it has to be judged on the
yardsticks of return, liquidity, safety, convenience and tax efficiency.
COMPANY DETAILS
Prudential plc is a leading international financial services group providing retail financial
products and services and fund management to many millions of customers worldwide.
As a group Prudential plc has, as of December 31, 2004, over GBP187 billion of funds
under management, more than 16 million customers and over 22,500 employees
worldwide.
Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June
4, 2002, has accorded its approval in recognizing ICICI Bank Ltd. as a co-sponsor
consequent to the merger of ICICI Ltd. with ICICI Bank Ltd.
ICICI Bank is India's second-largest bank with total assets of about 2,513.89 bn (US$
56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the
year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn)
ICICI Bank has a network of about 614 branches and extension counters and over 2,200
ATMs. 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. ICICI Bank set up its international
banking group in fiscal 2002 to cater to the cross-border needs of clients and leverage on
its domestic banking strengths to offer products internationally. ICICI Bank currently has
3
subsidiaries in the United Kingdom, Canada and Russia, branches in Singapore and
Bahrain and representative offices in the United States, China, United Arab Emirates,
Bangladesh and South Africa.
HISTORY OF ICICI PRUDENTIAL

Prudential ICICI Mutual Fund changed its name as ICICI Prudential asset Management
company on 31st March 2007. Now it known as a ICICI Prudential Asset Management
company Ltd.
ICICI Prudential Asset Management Company, (49%:51%) a joint venture between
Prudential Plc, UK's leading insurance company and ICICI Bank Ltd, India's premier
financial institution.
The joint venture was formed with the key objective of providing the Indian investor
mutual fund products to suit a variety of investment needs. The AMC has already
launched a range of products to suit different risk and maturity profiles.
ICICI PRUDENTIAL Asset Management Company Limited has a net worth of about Rs.
80.14 crore (1 crore = 10 million) as of March 31, 2004. Both Prudential and ICICI Bank
Ltd have a strategic long-term commitment to the rapidly expanding financial services
sector in India.
The mutual fund of ICICI is a joint venture with Prudential Plc. of America; one of the
largest life insurance companies in the US of A. ICICI PRUDENTIAL Mutual Fund was
setup on 13th of October, 1993 with two sponsors, Prudential Plc. and ICICI Ltd. The
Trustee Company formed is ICICI PRUDENTIAL Trust Ltd. and the AMC is ICICI
PRUDENTIAL Asset Management Company Limited incorporated on 22nd of June,
1993.
ICICI PRUDENTIAL Mutual Fund is the first private sector mutual fund in India to
cross Rs. 37,869.58 crore mark in assets (figure as on March, 2007) and have won the
trust of 5,50,000 investors.
Total Mutual Fund Industry assets as on Feb.2007 is Rs.3,53,309 Cr. (source : AMFI)
The ICICI PRUDENTIAL Mutual Fund is the second largest mutual fund player in the
private
sector
with
assets
in
excess
of
Rs.
40
bn.
The debt funds, the ICICI PRUDENTIAL equity funds like Power and Growth Plan have
well performed in recent past. ICICI PRUDENTIAL has a separate analyst who monitors
the credit ratings of quality of assets, which are given by the credit rating agencies.
Today ICICI PRUDENTIAL has an extensive network of customer service centers in 26
cities and more than 12,000 customer contact points, comprising partner banks, financial
distribution
houses
and
financial
advisers.
The product portfolio has a diversification of debt, equity and balanced funds.
Key Indicators
As of May 1998
As on February 28,2007
Assets under Management
Rs. 160 crore
Rs. 37,869.58 crores
Number of Funds Managed
30
Guiding Principles
ICICI PRUDENTIAL will conduct its business with
Honesty and trustworthiness in all interactions.
A pioneering spirit and excellence in action.
Collaboration and teamwork.
An understanding of customer needs and the desire to satisfy them.
The highest service standards.
A consistently above average performance.
Vision
To make Prudential ICICI the dominant Fund and Portfolio Management player built on
trust by world-class people and services.
The company hopes to achieve by:
Understanding the needs of customers and offering them superior products

and service
Leveraging technology to service customers quickly, efficiently and

conveniently
Developing and implementing superior risk management and investment

strategies to offer sustainable and stable returns to policyholders
Providing an enabling environment to foster growth and learning for

employees
And above all, building transparency in all dealings.
The company is on the threshold of an exciting new opportunity, where it can play a
significant role in redefining and reshaping the sector. Given the quality of companys
parentage and the commitment of companys team, there are no limits to the companys
growth.
ICICI PRUDENTIAL Identity
FEATURES OF BUSINESS
Close to our clients and investment markets

Global business framework
Stable yet vibrant
Teamwork
Backing of the ICICI group
ASPIRATIONS
Energetic and focused

Intelligent and innovative
Committed to quality
Diverse
Open and honest
EMPLOYEES
Leverage our multi-local structure
Deliver consistent risk-controlled performance
Make informed and intelligent investment decisions
Offer a menu of outstanding client services
Attract and develop talented people
COMPETITIVE ADVANTAGES
Global and local
Leading thinking
Transparency
Longevity
OWNERS
Board of Directors of the AMC

The ICICI PRUDENTIAL AMC Board comprises reputed people from the finance
industry both from India and abroad.
Mr. K. V. Kamath - Chairman
Mr. Ajay Srinivasan
Ms. Kalpana Morparia
Ms. Shikha Sharma
Mr. K. S. Mehta
Mr. Dadi Engineer
Mr. B. R. Gupta
Dr. (Mrs.) Swati A Piramal
Mr. Pankaj Razdan Managing Director
Mr.Barry Stowe
Mr. Vikram B. Trivedi
Mr. Vijay Thacker
The Directors of the Trustee Company

Mr. E. B. Desai - Chairman
Mr. D. J. Balaji Rao
Mr. Nagesh Pinge *
Mr. S. P. Subhedar *
Mr. M. S. Parthasarathy
Mr. Nagesh Pinge is a Senior General Manager (Compliance and Audit Group) of ICICI
Bank Limited and Mr. S.P. Subhedar is a Senior Advisor to the Prudential Corporation
Asia Limited, a wholly owned subsidiary of prudential plc
MANAGEMENT TEAM OF ICICI PRUDENTIAL Mutual Fund
Mr. Pankaj Razdan
MANAGING DIRECTOR
Mr. Nilesh Shah
Chief Investment Officer
Mr. Vasant Sanzgiri
Sr. Vice President & Head Human Recourses
Mr. Kalyan Prasath
Vice President Information Technology
Mr. Ranganath Athreya
Sr.VP Legal, Compliance and C.S.
Mr. Ashok Suvarna
Vice President Operation
Mr. B. Ramakrishna
Chief Financial Officer
Sumit Sirsikar
Vice President Marketing
General Information on Mutual Fund

History of the Indian Mutual Fund Industry
The mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank the. The history of
mutual funds in India can be broadly divided into four distinct phases
First Phase 1964-87

An Act of Parliament established Unit Trust of India (UTI) on 1963. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of
the Reserve Bank of India. In 1978 UTI was de-linked from the RBI and the Industrial
Development Bank of India (IDBI) took over the regulatory and administrative control in
place of RBI. The first scheme launched by UTI was Unit Scheme 1964. At the end of
1988 UTI had Rs.6, 700 crores of assets under management.
Second Phase 1987-1993 (Entry of Public Sector Funds)

1987 marked the entry of non- UTI, public sector mutual funds set up by public sector
banks and Life Insurance Corporation of India (LIC) and General Insurance Corporation
of India (GIC). SBI Mutual Fund was the first non- UTI Mutual Fund established in June
1987 followed by Canbank Mutual Fund (Dec 87), Punjab National Bank Mutual Fund
(Aug 89), Indian Bank Mutual Fund (Nov 89), Bank of India (Jun 90), Bank of Baroda
Mutual Fund (Oct 92). LIC established its mutual fund in June 1989 while GIC had set
up its mutual fund in December 1990.
At the end of 1993, the mutual fund industry had assets under management of Rs.47, 004
crores
Third Phase 1993-2003 (Entry of Private Sector Funds)

With the entry of private sector funds in 1993, a new era started in the Indian mutual
fund industry, giving the Indian investors a wider choice of fund families. Also, 1993
was the year in which the first Mutual Fund Regulations came into being, under which
all mutual funds, except UTI were to be registered and governed. The erstwhile Kothari
Pioneer (now merged with Franklin Templeton) was the first private sector mutual fund
registered in July 1993.
The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.
The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1, 21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.
10
Fourth Phase since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under management of Rs.29, 835 crores as at the end of January
2003, representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.
The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among
different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth. As at the end of September 2004, there were 29 funds, which
manage assets of Rs.153108 crores under 421 schemes.
11
GROWTH IN ASSETS UNDER MANAGEMENT
Note:
Erstwhile UTI was bifurcated into UTI Mutual Fund and the Specified Undertaking of
the Unit Trust of India effective from February 2003. The Assets under management of
the Specified Undertaking of the Unit Trust of India has therefore been excluded from
the total assets of the industry as a whole from February 2003 onwards.
12
INTRODUCTION
A mutual fund is a pool of money that is invested in
various securities and professionally managed by an
investment manager
WHAT IS A MUTUAL FUND?

In a mutual fund, you join several other investors, pool all your monies, and hand it over
to a few professionals to invest on your behalf in a variety of tradable securities. Your
gains (or losses) will depend on the proportion of your funds in the collective pool.
MUTUAL FUND CONCEPT

A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market
instruments such as shares, debentures and other securities. The income earned through
these investments and the capital appreciation realized is shared by its unit holders in
proportion to the number of units owned by them. Thus a Mutual Fund is the most
suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed basket of securities at a relatively low cost. The flow
chart below describes broadly the working of a mutual fund:
MUTUAL FUND OPERATION FLOW CHART
ORGANISATION OF A MUTUAL FUND

There are many entities involved and the diagram below illustrates the organizational set
up of a mutual fund:
13
TYPES OF MUTUAL FUND SCHEMES

Wide variety of Mutual Fund Schemes exists to cater to the needs such as financial
position, risk tolerance and return expectations etc. The table below gives an overview
into the existing types of schemes in the Industry.
TYPES OF MUTUAL FUNDS

1. BY STRUCTURE
Open-ended schemes
Open-ended schemes do not have a fixed maturity period. Investors can buy or sell units
at NAV-related prices from and to the mutual fund on any business day. These funds are
not generally listed on any exchange.
Such funds can issue and redeem units any time during the life of a scheme. Hence, unit
capital of open-ended funds can fluctuate on a daily basis.
Close-ended schemes
A Close-ended Fund has a stipulated maturity period, which generally ranges from 3 to
15 years. The fund is open for subscription only during a specified period. Investors can
14
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, if they are listed.
2. BY INVESTMENT OBJECTIVE
Growth Funds
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a majority of their corpus in equities. Growth schemes are
ideal for investors who have a long-term outlook and are seeking growth over a period of
time.
Income Funds
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.
Government securities\Gilt Fund

Income Funds are ideal for capital stability and regular income. Capital appreciation in
such funds may be limited, though risks are typically lower than that in a growth fund.
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 invest both in equities and fixed income
securities in the proportion indicated in their offer documents. This proportion affects the
risks and the returns associated with the balanced fund - in case equities are allocated a
higher proportion, investors would be exposed to risks similar to that of the equity
market.
Balanced funds with equal allocation to equities and fixed income securities are ideal for
investors looking for a combination of income and moderate growth.
Money Market Funds

The aim of Money Market Funds is to provide easy liquidity, preservation of capital and
moderate income. These schemes generally invest in safer short-term instruments such as
Treasury Bills, Certificates of Deposit, Commercial Paper, and Inter-Bank Call Money.
Returns on these schemes may fluctuate depending upon the interest rates prevailing in
the market.
These are ideal for corporate and individual investors as a means to park their surplus
funds for short periods.
3. OTHER EQUITY RELATED SCHEMES

Tax Saving Schemes\ELSS
These schemes offer tax rebates to the investors under specific provisions of the Indian
Income Tax laws, as the Government offers tax incentives for investment in specified
15
avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension
Schemes are allowed as deduction under Section 88 of the Indian Income Tax Act, 1961.
These are normally equity funds, with a tax saving incentive thrown in. If you invest in
these funds, under section 88 of the Income Tax Act, you can take a tax write-off of 20%
of your investment. You can invest up to Rs.10000 a year, which means you can save up
to Rs. 2000 in taxes. These funds normally carry a high risk, but offer high returns too.
These are also known as Equity Linked Saving Schemes (ELSS).
Index Schemes
Index Funds attempt to replicate the performance of a particular index such as the BSE
Sensex or the NSE S&P CNX 50.
Sector Specific Schemes

Sector Funds are those, which invest, exclusively in specified sector(s) such as FMCG,
Information Technology, Pharmaceuticals, etc. These schemes carry higher risk as
compared to general equity schemes as the portfolio is less diversified, i.e. restricted to
specific sector(s) / industry (ies).
A summary is presented in the table below of the various funds and their
investment objectives.
Typical Investment Pattern
Scheme type
Objective
Open
Time Horizon
Risk
Profile
Close
Equity
(%)
Money Market Yes
No
Short-Term
Income
Yes
Yes
Growth
Yes
Balanced
Tax Saving
Low
Debt
(%)
Money Market
Inst./Others
(%)
0-20
80-100
Medium
Low to
-Long Term Medium
80-100
0-20
Yes
Long Term
High
80-100
0-20
0-20
Yes
Yes
Long term
Medium
to high
0-60
0-40
0-20
Yes
Yes
Long term
High
80-100
80-100
0-20
16
ADVANTAGES OF MUTUAL FUNDS

The advantages of investing in a Mutual Fund are:
Professional Management
Diversification
Convenient Administration
Return Potential
Liquidity
Transparency
Flexibility
Choice of schemes
Tax benefits
Well regulated
Professional Management
Mutual Funds employ the services of skilled professionals who have years of experience
to back them up. They use intensive research techniques to analyze each investment
option for the potential of returns along with their risk levels to come up with the figures
for performance that determine the suitability of any potential investment.
Diversification
Investments are spread across a wide cross-section of industries and sectors and so the
risk is reduced. Diversification reduces the risk because all stocks dont move in the
same direction at the same time. One can achieve this diversification through a Mutual
Fund with far less money than one can on his own.
Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such
as bad deliveries, delayed payments and follow up with brokers and companies. Mutual
Funds save your time and make investing easy and convenient.
Besides these important features, mutual funds also offer several other key traits.
Important among them are:
Potential of Returns
Returns in the mutual funds are generally better than any other option in any other
avenue over a reasonable period of time. People can pick their investment horizon and
stay put in the chosen fund for the duration. Equity funds can outperform most other
investments over long periods by placing long-term calls on fundamentally good stocks.
The debt funds too will outperform other options such as banks. Though they are
affected by the interest rate risk in general, the returns generated are more as they pick
17
securities with different duration that have different yields and so are able to increase the
overall returns from the portfolio.
Liquidity
Fixed deposits with companies or in banks are usually not withdrawn premature because
there is a penal clause attached to it. The investors can withdraw or redeem money at the
Net Asset Value related prices in the open-end schemes. In closed-end schemes, the units
can be transacted at the prevailing market price on a stock exchange. Mutual funds also
provide the facility of direct repurchase at NAV related prices. The market prices of these
schemes are dependent on the NAVs of funds and may trade at more than NAV (known
as Premium) or less than NAV (known as Discount) depending on the expected future
trend of NAV, which in turn is linked to general market conditions. Bullish market may
result in schemes trading at Premium while in bearish markets the funds usually trade at
Discount. This means that the money can be withdrawn anytime, without much reduction
in yield. Some mutual funds however, charge exit loads for withdrawal within a period
linked to a specific scheme.
Transparency
Being under a regulatory framework, mutual funds have to disclose their holdings,
investment pattern, and all the information that can be considered as material, before all
investors. This means that the investment strategy, outlooks of the market and scheme
related details are disclosed with reasonable frequency to ensure that transparency exists
in the system. This is unlike any other investment option in India where the investor
knows nothing as nothing is disclosed.
Flexible, Affordable and a Low Cost affair

Mutual Funds offer a relatively less expensive way to invest when compared to other
avenues such as capital market operations. The fee in terms of brokerages, custodial fees
and other management fees are substantially lower than other options and are directly
linked to the performance of the scheme. Investment in mutual funds also offers a lot of
flexibility with features such as regular investment plans, regular withdrawal plans, and
dividend reinvestment plans enabling systematic investment or withdrawal of funds.
Even the investors, who could otherwise not enter stock markets with low investible
funds, can benefit from a portfolio comprising of high-priced stocks because they are
purchased from pooled funds.
As has been discussed, mutual funds offer several benefits that are unmatched by other
investment options. Post liberalization, the industry has been growing at a rapid pace and
has crossed Rs. 150000 crore sizes in terms of its assets under management. However,
due to the low key investor awareness, the inflow under the industry is yet to overtake
the inflows in banks. Rising inflation, falling interest rates and a volatile equity market
make a deadly cocktail for the investor for whom mutual funds offer a route out of the
impasse. The investments in mutual funds are not without risks because the same forces
such as regulatory frameworks, government policies, interest rate structures,
performance of companies etc. that rattle the equity and debt markets, act on mutual
funds too. But it is the skill of the managing risks that investment managers seek to
implement in order to strive and generate superior returns than otherwise possible that
makes them a better option than many others.
18
Choice of Scheme
Mutual Funds offer a family of schemes to suit your varying needs over a lifetime. Well
regulated all mutual Funds are registered with SEBI and they function within the
provisions of strict regulations designed to protect the interests of investors. The
operations of Mutual Funds are regularly monitored by SEBI.
Number of available options

Mutual funds invest according to the underlying investment objective as specified at the
time of launching a scheme. So, we have equity funds, debt funds, gilt funds and many
others that cater to the different needs of the investor. The availability of these options
makes them a good option. While equity funds can be as risky as the stock markets
themselves, debt funds offer the kind of security that is aimed for at the time of making
investments. Money market funds offer the liquidity that is desired by big investors who
wish to park surplus funds for very short-term periods. Balance Funds cater to the
investors having an appetite for risk greater than the debt funds but less than the equity
funds. The only pertinent factor here is that the fund has to be selected keeping the risk
profile of the investor in mind because the products listed above have different risks
associated with them. So, while equity funds are a good bet for a long term, they may not
find favor with corporate or High Net worth Individuals (HNIs) who have short-term
needs.18
Well Regulated
Unlike the company fixed deposits, where there is little control with the investment
being considered as unsecured debt from the legal point of view, the Mutual Fund
industry is very well regulated. All investments have to be accounted for, decisions
judiciously taken. SEBI acts as a true watchdog in this case and can impose penalties on
the AMCs at fault. The regulations, designed to protect the investors interests are also
implemented effectively.
19
Investment offer to Client

What should Investment offer to Client
18k profilef invstmental
Liquidit
investmentrat
y
Safet
y
You get
your
Money
back
Yo
u get your money back when you

want it
Plus
Convenience
How easy is it to invest,

disinvest
And adjust to your needs?
How much is really left for you post tax?
Post-tax
Returns
For the same liquidity - higher the safety, lower the returns
For the same safety - higher the liquidity, lower the returns
20
DRAWBACKS OF MUTUAL FUNDS

Mutual funds have their drawbacks and may not be for everyone:
No Guarantees: No investment is risk free. If the entire stock market declines

in value, the value of mutual fund shares will go down as well, no matter how
balanced the portfolio. Investors encounter fewer risks when they invest in
mutual funds than when they buy and sell stocks on their own. However, anyone
who invests through a mutual fund runs the risk of losing money.
Fees and commissions: All funds charge administrative fees to cover their
day-to-day expenses. Some funds also charge sales commissions or "loads" to
compensate brokers, financial consultants, or financial planners. Even if you don't
use a broker or other financial adviser, you will pay a sales commission if you
buy shares in a Load Fund.
Taxes: During a typical year, most actively managed mutual funds sell
anywhere from 20 to 70 percent of the securities in their portfolios. If your fund
makes a profit on its sales, you will pay taxes on the income you receive, even if
you reinvest the money you made.
Management risk: When you invest in a mutual fund, you depend on the
fund's manager to make the right decisions regarding the fund's portfolio. If the
manager does not perform as well as you had hoped, you might not make as
much money on your investment as you expected. Of course, if you invest in
Index Funds, you forego management risk, because these funds do not employ
manager Fluctuating Returns
TYPES OF RISK
Risk is an inherent aspect of every form of investment. For mutual fund investments,
risks would include variability, or period-by-period fluctuations in total return. The value
of the scheme's investments may be affected by factors affecting capital markets such as
price and volume volatility in the stock markets, interest rates, currency exchange rates,
foreign investment, changes in government policy, political, economic or other
developments.
Market Risk:
At times the prices or yields of all the securities in a particular market rise or fall due to
broad outside influences. When this happens, the stock prices of both an outstanding,
highly profitable company and a fledgling corporation may be affected. This change in
price is due to "market risk.
Inflation Risk:
21
Sometimes referred to as "loss of purchasing power." Whenever the rate of inflation

exceeds the earnings on your investment, you run the risk that you'll actually be able to
buy less, not more.
Credit Risk:
In short, how stable is the company or entity to which you lend your money when you
invest? How certain are you that it will be able to pay the interest you are promised, or
repay your principal when the investment matures?
Investment Risks:
In the sector fund schemes, investments will be predominantly in equities of select
companies in the particular sectors. Accordingly, the NAV of the schemes are linked to
the equity performance of such companies and may be more volatile than a more
diversified portfolio of equities.
Interest Rate Risk:

Changing interest rates affect both equities and bonds in many ways. Movements in the
interest rates influence Bond prices in the financial system. Generally, when interest rates
rise, prices of the securities fall and when interest rates drop, the prices increase. Interest
rate movements in the Indian debt markets can be volatile leading to the possibility of
large price movements up or down in debt and money market securities and thereby to
possibly large movements in the NAV.
Liquidity Risk:
Thinly traded securities carry the danger of not being easily saleable at or near their real
values. The fund manager may therefore be unable to quickly sell an illiquid bond and
this might affect the price of the fund unfavorably. Liquidity risk is characteristic of the
Indian fixed income market.
Comparison with Bank

Banks v/s
Mutual Funds
BANKS
MUTUAL FUNDS
Returns
Moderate
Better
High
Low
Administrative
exp.
22
Risk
Low
Moderate
Investment options
Less
More
Network
High penetration
Moderate and still

improving
Liquidity
At a cost
Better
Not transparent
Transparent
Quality of assets
Interest calculation Minimum balance between 10th. & 30th. Of

every month
Guarantee
Maximum Rs.1 lakh on deposits
Everyday
None
Dominant Players in the Industry as share of AUM
Dominate Players with %No. Of schemes
23
It is seen from the above two pie charts that still bank led mutual funds hold a
much wider asset under management as well as schemes under their shelter, but slowly
the Indian private sector and the foreign funds are going up and the future lie in them.
Top Five AUM Holders in the Industry
24
Assets Under Management (AUM) as at the end of Feb-2007 (Rs in Lakhs)

AUM
Mutual Fund Name
1. ABN AMRO Mutual Fund

2. AIG Global Investment Group Mutual Fund
3. Benchmark Mutual Fund
4. Birla Sun Life Mutual Fund
5. BOB Mutual Fund
Excluding Fund
Of Funds
527298.61
N/A
Average AUM For The Month
Fund Of Funds
34793.7
N/A
Excluding Fund
Of Funds
520357.41
N/A
Fund Of Funds
35962.1
N/A
493459.19
565300.47
2107032.33
1901.45
2276874.74
2016.87
13189.46
12710.58
6. Canbank Mutual Fund
220055.55
224400.85
7. DBS Chola Mutual Fund
267272.69
236941.15
8. Deutsche Mutual Fund
632738.66
643309.79
9. DSP Merrill Lynch Mutual Fund
1363796.81
1337579
10. Escorts Mutual Fund
11892.52
9857
11. Fidelity Mutual Fund
567052.22
7885.48
594872.17
8669.47
12. Franklin Templeton Mutual Fund
2210219.06
32939.41
2343907.4
33551.3
13. HDFC Mutual Fund
3107988.05
3222873.02
14. HSBC Mutual Fund
1196159.48
1219830.8
15. ING Vysya Mutual Fund
465070.34
91168.93
469516.87
97905.45
16. JM Financial Mutual Fund
382811.94
386731.37
17. JPMorgan Mutual Fund
N/A
18. Kotak Mahindra Mutual Fund
1340625.72
55835.13
1335816.27
59243.32
19. LIC Mutual Fund
1149722.96
1197068.82
123858.99
84093.35
20. Lotus India Mutual Fund

21. Morgan Stanley Mutual Fund
N/A
N/A
N/A
287119.9
310427.14
22. PRINCIPAL Mutual Fund
1060032.69
1094027.66
23. ICICI PRUDENTIAL Mutual Fund
4328067.51
3731.96
3907924.85
3982.85
24. Quantum Mutual Fund
5380.17
5818.48
25. Reliance Mutual Fund
4221591.34
4359281.53
17596.99
16987.98
26. Sahara Mutual Fund
25
27. SBI Mutual Fund
1847383.96
1874050.79
28. Standard Chartered Mutual Fund
1299706.71
2886.65
1381960.47
2861.86
780107.96
793897.25
1419829.99
1448329.74
23543.31
25362.02
3860299.44
3926014.55
35330904.55
231142.71
35826123.52
244193.22
29. Sundaram BNP Paribas Mutual Fund

30. Tata Mutual Fund
31. Taurus Mutual Fund
32. UTI Mutual Fund
Grand Total
Top Five Funds schemes (in No.)
UTI having just half the no. of schemes, i.e. 69 which comes to be the least in all the top
five funds, as compared to ICICI PRUDENTIAL and Franklin Templeton still holds the
major AUM and thus is still a market leader in the industry.
Categorywise AUM
Category
Income
Growth
Balanced
Liquid/Money
Market
Gilt
Open End
Close End
Total
Percentage
No. Of
No. Of
No. Of
Amount
Amount
Amount
%
Schemes
Schemes
Schemes
136
6120
101
3041
237
9161
6.03
196
15538
4
200
15538
10.22
34
394
2
36
394
0.26
46
28
126610
113
26
46
28
126610
113
83.30
0.07
ELSS
Total
26
466
179
148954
9
116
3041
35
582
179
151995
0.12
100
Above Table showing Category wise Assets Under Management
Above chart showing category wise under management

Asset Under Management
Mutual Fund Name
AUM
Equity &
Balance
Debt &
MIP
ABN AMRO Mutual Fund
1580.36
464.589.
1115.92
29.39
70.61
Alliance Capital Mutual Fund
1431.46
589.48
841.98
41.18
58.82
10049.66
1668.77
8380.89
16.61
83.39
Canbank Mutual Fund
1565.19
224.35
1340.84
14.33
85.67
Chola Mutual Fund
1004.62
232.63
771.99
23.16
76.84
Deutsche Mutual Fund
2366.72
96.57
2270.15
4.08
95.92
DSP Merrill Lynch Mutual Fund
6472.80
1462.33
5010.47
22.59
77.41
Birla Sun Life Mutual Fund
27
Equity
%
Debt
%
Fidelity Mutual Fund
1628.06
1628.06
0.00
100.00
0.00
Franklin Templeton Mutual Fund
16704.74
6965.36
9739.38
41.70
58.30
HDFC Mutual Fund
15707.82
6126.04
9581.78
39.00
61.00
HSBC Mutual Fund
7250.63
1987.93
5262.70
27.42
72.58
ING Vysya Mutual Fund
2072.86
337.25
1735.62
16.27
83.73
JM Financial Mutual Fund
3780.83
85.52
3694.51
2.26
97.74
Kotak Mahindra Mutual Fund
6501.52
1065.12
5436.41
16.38
83.62
LIC Mutual Fund
2959.15
277.46
2681.69
9.38
90.62
PRINCIPAL Mutual Fund
6264.96
1682.48
4582.48
26.86
73.14
17095.89
2169.46
12.69
87.31
9907.89
4226.40
14926.4
4
5681.49
42.66
57.34
565.50
25.74
539.76
455
95.45
SBI Mutual Fund
7189.35
2311.54
4877.81
32.15
67.85
Standard Charted Mutual Fund
7636.86
0.00
7636.86
0.00
Sundaram Mutual Fund
2035.21
997.91
1037.31
49.03
100.0
0
50.97
Tata Mutual Fund
8713.95
2629.09
6084.86
30.17
69.83
170.76
157.53
13.23
92.25
7.75
21975.57
8791.81
13183.7
40.01
7
List of Assets Management Companies and their assets under management
59.99
Prudential ICICI Mutual Fund

Reliance Mutual Fund
Sahara Mutual Fund
Taurus Mutual Fund

UTI Mutual Fund
28
PRODUCTS OF ICICI MUTUAL FUNDS
The chart below plots schemes offered by ICICI Prudential Mutual Fund on a risk-return
29
PRODUCT DETAILS
ICICI PRUDENTIAL Mutual Fund
Mutual Fund
ICICI PRUDENTIAL Tax Plan
Scheme Name
Open Ended
Scheme Type
Scheme Category
ELSS
Latest Net Asset Value

Net Asset
Scheme Name
Date
Value
ICICI PRUDENTIAL Tax Plan Growth

Option
ICICI PRUDENTIAL Tax Plan Dividend
92.43
31-May-2007
22.19
31-May-2007
Mutual Fund
ICICI PRUDENTIAL Growth Plan
Scheme Name
Open Ended
Scheme Type
Scheme Category
Growth

Scheme Name
Net Asset Value
ICICI PRUDENTIAL Growth Plan Growth

Option
99.80
30
Date
31-May-2007
ICICI PRUDENTIAL Growth Plan
24.44
Dividend Option
31-May-2007
Mutual Fund
ICICI PRUDENTIAL Emerging Star Fund
Scheme Name
Open Ended
Scheme Type
Growth
Scheme Category
September 6, 2004
Launch Date
Net Asset
Scheme Name
Growth
Dividend
Mutual Fund
Scheme Name
Scheme Type
Scheme Category
Launch Date
Date
Value
30.71
22.38
31-May2007
31-May2007

ICICI PRUDENTIAL Discovery Fund
Open Ended
Growth
July 9, 2004
31
Net Asset
Scheme Name
Date
Value
31-May-
28.16
GROWTH OPTION
2007
31-May-
19.47
DIVIDEND OPTION
2007
Mutual Fund
ICICI PRUDENTIAL Dynamic Plan
Scheme Name
Open Ended
Scheme Type
Growth
Scheme Category
October 31, 2002
Launch Date
Net Asset
Scheme Name
ICICI PRUDENTIAL Dynamic Plan Growth
Option
ICICI PRUDENTIAL Dynamic Plan
Scheme Name
Scheme Type
69.97
21.89
DIVIDEND OPTION
Mutual Fund
Date
Value
31-May2007
31-May2007

ICICI PRUDENTIAL Child Care- Gift Plan
Open Ended
32
Income
Scheme Category
August 31, 2001
Launch Date
Scheme Name
Net Asset Value
ICICI PRUDENTIAL Child Care- Gift Plan42.52
Date
31-May-2007
Mutual Fund
ICICI PRUDENTIAL Income Multiplier Fund
Scheme Name
Open Ended
Scheme Type
Balanced
Scheme Category
March 30, 2004
Launch Date
Net Asset
Scheme Name
Value

Cumulative Option
Dividend option
33
14.6798
11.9340
Date
31-May2007
31-May2007
Schemes Details
As on June 2005
(In Crores.)
Particulars
ICICI
Industry PRUDENTIAL
Diversified
Tax Planning
Index
Sector
28618.8724
773.8087
869.6487
3661.9773
1593.8546
47.9336
2.0978
179.0116
Total Equity
33924.3071
2107.78
9082.8574
7742.783
1551.236
823.2623
FMP
MIP
34
Debt ST
Income
9263.0892
28590.8167
479.4336
3778.4525
Total Debt
54679.5463
6932.384
Balanced
9966.6865
469.6412
Gilt LT
Gilt ST
4326.7692
357.1592
412.9397
150.5677
Total Gilt
4683.9284
563.5074
49394.0355
6961.6842
152648.5038
17095..89
Liquid
Total
SYSTEMATIC INVESTMENT PLAN

By investing an equivalent amount at regular intervals, each month for example, the
investors do not have to worry about catching market highs and lows, because their
monthly contribution will buy more Units when prices are low and fewer Units when
prices are high. The net result is that, over a long period of time, their average cost could
be lower than the average market price, and when they eventually sell your Units, their
gain could be higher than if they had invested a lump sum. Thus, by investing a fixed
amount of Rupees at regular intervals, Unit holders can take advantage of the benefits of
Rupee Cost Averaging, at the same time saving a fixed amount of Rupees each month.
This concept may be understood more easily through the example given below:
Month
1
2
3
4
Amoun
t
Rupees
1000
1000
1000
1000
Fluctuating Prices
Price
-Rs
12
15
9
12
Units
83.333
66.667
111.111
83.333
Rising Prices
PriceRs
12
14
15
18
35
Units
83.333
71.429
66.667
55.556
Falling Prices
PriceRs
12
10
8
6
Units
83.333
100.000
125.000
166.667
Total
4000
344.444
276.985
475.000
Total of Rs
48
59
36
Simple Average cost

per unit (Rs) (A)
12
14.75
9.00
Average cost for SIP

investor (Rs) (B)
11.69
14.44
8.42
Savings per unit for

you, an SIP investor
in Rs
0.39
0.31
0.58
(A) Adding all purchase prices and dividing by four a simple average.
(B) Dividing total investment of Rs.4000 by total number of units.
TRENDS
Current Market Trends
Alone UTI with just one scheme in 1964 now competes with as many as 400 odd
products and 34 players in the market. Now in a new avatar UTI II, it still remains the
highest AUM owner in the industry. In spite of the stiff competition and losing market
share, UTI still remains a formidable force to reckon with. Last six years have been the
most turbulent as well as exiting ones for the industry. New players have come in, while
others have decided to close shop by either selling off or merging with others. Product
innovation is now pass with the game shifting to performance delivery in fund
management as well as service. Those directly associated with the fund management
industry like distributors, registrars and transfer agents, and even the regulators have
become more mature and responsible. The industry is also having a profound impact on
financial markets. While UTI has always been a dominant player on the bourses as well
as the debt markets, the new generations of private funds, which have gained substantial
mass, are now seen flexing their muscles. Fund managers, by their selection criteria for
stocks have forced corporate governance on the industry. By rewarding honest and
transparent management with higher valuations, a system of risk-reward has been created
where the corporate sector is more transparent then before. Funds have shifted their
36
focus to the recession free sectors like pharmaceuticals, FMCG and technology sector.
Funds performances are improving. Funds collection, which averaged at less than
Rs100bn per annum over five-year period spanning 1993-98 doubled to Rs210bn in
1998-99. In the current year mobilization till now have exceeded Rs500bn. What is
particularly noteworthy is that bulk of the mobilization has been by the private sector
mutual funds rather than public sector mutual funds. Indeed private MFs , comprising of
Indian banks, predominantly Indian and foreign mutual funds, has an AUM of Rs.
1,35,000 crore during the first of Januarty,2004r as against a net inflow of Rs.7500 crore
in the case of public sector funds. Mutual funds are now also competing with commercial
banks in the race for retail investors savings and corporate float money. The power shift
towards mutual funds has become obvious. The coming few years will show that the
traditional saving avenues are losing out in the current scenario, as the rate of returns will
dip bottom forcing the investors towards the funds. Many investors are realizing that
investments in savings accounts are as good as locking up their deposits in a closet. The
fund mobilization trend by mutual funds in the current year indicates that money is going
to mutual funds in a big way.
India is at the first stage of a revolution that has already peaked in the U.S. The
U.S. boasts of an Asset base that is much higher than its bank deposits. In India, mutual
fund assets are not even 10% of the bank deposits, but this trend is beginning to change.
Recent figures indicate that in the first quarter of the current fiscal year mutual fund
assets went up by 115% whereas bank deposits rose by only 17%. This is forcing a large
number of banks to adopt the concept of narrow banking wherein the deposits are kept in
Gilts and some other assets, which improves liquidity and reduces risk. The basic fact
lies that banks cannot be ignored and they will not close down completely. Their role as
intermediaries cannot be ignored. It is just that Mutual Funds are going to change the
way banks do business in the future.
Private mutual funds are largely concentrated in the metros and mini metros the top
25 cities of India, to be precise. Mumbai, Delhi, Kolkata and Chennai make up 81% of
the overall private MF market in terms of assets under management (AUM), according to
data sourced by the ET Intelligence Group. The city-wise break-up shows Mumbai
leading the pack with a market share of 48.4%. Delhis second with 18.2% market share
while Kolkata holds the third position with 7.4% market share. For evaluating the market
for individual cities, assets held by investors in that particular city were taken into
consideration. Region-wise, western India is the biggest market (54.1%). North, South
and East follow with market shares of 20.3%, 16.6% and 9.1% respectively. This data
does not include UTI. And in the western region, Mumbai, Pune and Ahmedabad lead
with market shares of 48.4%, 3.8% and 2% respectively. While Delhi tops the charts in
the North with an all India market share of 18.2%, Chennai and Kolkata lead the pack in
their respective regions with market shares of 6.6% and 7.4% respectively. The size of
the private MF industry, based on AUM, is Rs 96,932 crore as of October 03. Private
fund houses make up the largest category (76%) of the MF market. Says Saurabh
Sonthalia, head of strategy and business development for DSPML MF, The private MF
market has historically been concentrated in the top metros and penetration levels are
still very low. Private MFs are largely concentrated among the 1.6 crore urban
households that fall in the SEC A and SEC B categories. Even in this category, MF
37
penetration is a miniscule 1.9%. Broadly, MFs or AMCs (asset management companies)

manage two types of funds, viz debt-oriented or equity oriented. AMCs earn differential
management fees based on the type of fund class they manage. Management fees for
equity-based funds tend to be higher than that for debt funds. Investors in the North seem
to have a bigger appetite for risk than those in the South, where preference for equity
funds is lower than that in the North. Hence, the market for equity funds is larger in the
North than in the South. But Krishnamurthy Vijayan, CEO of JM mutual fund says,
Investors in Rajasthan and Gujarat have relatively higher inclination towards equities.
But now even people from the South, for example, Godavari district of Andhra Pradesh,
prefer equities. Says NR Ramakrishna, CMO of SBI MF, Places like Vijayawada and
Nagpur, where the secondary market is vibrant, are also showing a lot of potential for
selling equity funds. Mumbai and Delhi lead the MF race as they fall under the high
value-clearing zone. Mumbai also has the advantage of being the nations financial
capital. This attracts the bulk of Corporate Indias investments.
CURRENT MARKET TRENDS :

ICICI PRUDENTIAL AMC & RELIANCE AMC are running head to head in terms of
Assets.
ICICI PRUDENTIAL Mutual Fund is heading with assets of Rs.43,280.67 Crs.
Reliance Mutual Funds assets reaches to Rs.42,215.91 Crs. Just a mere Rs.1,064 Cr.
Difference. So UTI Mutual Fund has come down to 3 rd position with corpus of
Rs.38,602.99 Crs.
Year 2006 saw the AMC's market share decline to 11.73 per cent by the end of 2006 from
12.68 per cent last year to Rs 38,108.5 crore, with Reliance Mutual Fund tiptoeing on its
heels as its assets swelled by a massive 143 per cent to Rs 36,928.5 crore. Not only has
the latter breezed past ICICI PRUDENTIAL to become the second largest fund house of
the country, it has come very close to dethroning UTI from the top slot.
(Source : Value Research Online, MutualFund Insight)
Current Scenario
Some facts for the growth of mutual funds in India
100% growth in the last 6 years.
Number of foreign AMC's are in the que to enter the Indian markets like Fidelity
Investments, US based, with over US$1trillion assets under management
worldwide.
Our saving rate is over 23%, highest in the world. Only channelizing these
savings in mutual funds sector is required.
We have approximately 29 mutual funds, which is much less than US having
more than 800. There is a big scope for expansion.
38
'B' and 'C' class cities are growing rapidly. Today most of the mutual funds are
concentrating on the 'A' class cities. Soon they will find scope in the growing
cities.
Mutual fund can penetrate rural like the Indian insurance industry with simple
and limited products.
SEBI allowing the MF's to launch commodity mutual funds.
Emphasis on better corporate governance.
Trying to curb the late trading practices.
Introduction of Financial Planners who can provide need based advice.
COMPETITORS DETAILS
MUTUAL FUND COMPANIES IN INDIA
The concept of mutual funds in India dates back to the year 1963. The era between 1963
and 1987 marked the existence of only one mutual fund Company in India with Rs. 67bn
assets under management (AUM), by the end of its monopoly era, the Unit Trust of India
(UTI). By the end of the 80s decade, few other mutual fund companies in India took their
position in mutual fund market.
The new entries of mutual fund companies in India were SBI Mutual Fund, Canbank
Mutual Fund, Punjab National Bank Mutual Fund, Indian Bank Mutual Fund, Bank of
India Mutual Fund.
The succeeding decade showed a new horizon in Indian mutual fund industry. By the end
of 1993, the total AUM of the industry was Rs. 470.04 bn. The private sector funds
started penetrating the fund families. In the same year the first Mutual Fund Regulations
came into existence with re-registering all mutual funds except UTI. The regulations
were further given a revised shape in 1996.
Kothari Pioneer was the first private sector mutual fund company in India, which has
now merged with Franklin Templeton. Just after ten years with private sector players
penetration, the total assets rose up to Rs. 1218.05 bn. Today there are 33 mutual fund
companies in India.
39
Major Mutual Fund Companies in India

ABN AMRO Mutual Fund
ABN AMRO Mutual Fund was setup on April 15, 2004 with ABN AMRO Trustee
(India) Pvt. Ltd. as the Trustee Company. The AMC, ABN AMRO Asset Management
(India) Ltd. was incorporated on November 4, 2003. Deutsche Bank A G is the custodian
of ABN AMRO Mutual Fund.
Birla Sun Life Mutual Fund
Birla Sun Life Mutual Fund is the joint venture of Aditya Birla Group and Sun Life
Financial. Sun Life Financial is a global organisation evolved in 1871 and is being
represented in Canada, the US, the Philippines, Japan, Indonesia and Bermuda apart
from India. Birla Sun Life Mutual Fund follows a conservative long-term approach to
investment. Recently it crossed AUM of Rs. 10,000 crores.
Bank of Baroda Mutual Fund (BOB Mutual Fund)
Bank of Baroda Mutual Fund or BOB Mutual Fund was setup on October 30, 1992 under
the sponsorship of Bank of Baroda. BOB Asset Management Company Limited is the
AMC of BOB Mutual Fund and was incorporated on November 5, 1992. Deutsche Bank
AG is the custodian.
HDFC Mutual Fund
HDFC Mutual Fund was setup on June 30, 2000 with two sponsor namely Housing
Development Finance Corporation Limited and Standard Life Investments Limited.
HSBC Mutual Fund
HSBC Mutual Fund was setup on May 27, 2002 with HSBC Securities and Capital
Markets (India) Private Limited as the sponsor. Board of Trustees, HSBC Mutual Fund
acts as the Trustee Company of HSBC Mutual Fund.
ING Vysya Mutual Fund
ING Vysya Mutual Fund was setup on February 11, 1999 with the same named Trustee
Company. It is a joint venture of Vysya and ING. The AMC, ING Investment
Management (India) Pvt. Ltd. was incorporated on April 6, 1998.
Sahara Mutual Fund
Sahara Mutual Fund was set up on July 18, 1996 with Sahara India Financial
Corporation Ltd. as the sponsor. Sahara Asset Management Company Private Limited
incorporated on August 31, 1995 works as the AMC of Sahara Mutual Fund. The paid-up
capital of the AMC stands at Rs 25.8 crore.
State Bank of India Mutual Fund
State Bank of India Mutual Fund is the first Bank sponsored Mutual Fund to launch
offshore fund, the India Magnum Fund with a corpus of Rs. 225 cr. approximately. Today
it is the largest Bank sponsored Mutual Fund in India. They have already launched 35
40
Schemes out of which 15 have already yielded handsome returns to investors. State Bank
of India Mutual Fund has more than Rs. 5,500 Crores as AUM. Now it has an investor
base of over 8 Lakhs spread over 18 schemes.
Tata Mutual Fund
Tata Mutual Fund (TMF) is a Trust under the Indian Trust Act, 1882. The sponsor for
Tata Mutual Fund are Tata Sons Ltd., and Tata Investment Corporation Ltd. The
investment manager is Tata Asset Management Limited and its Tata Trustee Company
Pvt. Limited. Tata Asset Management Limited's is one of the fastest in the country with
more than Rs. 7,703 crores (as on April 30, 2005) of AUM.
Kotak Mahindra Mutual Fund
Kotak Mahindra Asset Management Company (KMAMC) is a subsidiary of KMBL. It is
presently having more than 1, 99,818 investors in its various schemes. KMAMC started
its operations in December 1998. Kotak Mahindra Mutual Fund offers schemes catering
to investors with varying risk - return profiles. It was the first company to launch
dedicated gilt scheme investing only in government securities.
Unit Trust of India Mutual Fund
UTI Asset Management Company Private Limited, established in Jan 14, 2003, manages
the UTI Mutual Fund with the support of UTI Trustee Company Private Limited. UTI
Asset Management Company presently manages a corpus of over Rs.20000 Crore. The
sponsor of UTI Mutual Fund are Bank of Baroda (BOB), Punjab National Bank (PNB),
State Bank of India (SBI), and Life Insurance Corporation of India (LIC). The schemes
of UTI Mutual Fund are Liquid Funds, Income Funds, Asset Management Funds, Index
Funds, Equity Funds and Balance Funds.
Reliance Mutual Fund
Reliance Mutual Fund (RMF) was established as trust under Indian Trusts Act, 1882. The
sponsor of RMF is Reliance Capital Limited and Reliance Capital Trustee Co. Limited is
the Trustee. It was registered on June 30, 1995 as Reliance Capital Mutual Fund which
was changed on March 11, 2004. Reliance Mutual Fund was formed for launching of
various schemes under which units are issued to the Public with a view to contribute to
the capital market and to provide investors the opportunities to make investments in
diversified securities.
Standard Chartered Mutual Fund
Standard Chartered Mutual Fund was set up on March 13, 2000 sponsored by Standard
Chartered Bank. The Trustee is Standard Chartered Trustee Company Pvt. Ltd. Standard
Chartered Asset Management Company Pvt. Ltd. is the AMC which was incorporated
with SEBI on December 20, 1999.
Franklin Templeton India Mutual Fund
The group, Franklin Templeton Investments is a California (USA) based company with a
global AUM of US$ 409.2 bn. (as of April 30, 2005). It is one of the largest financial
41
services groups in the world. Investors can buy or sell the Mutual Fund through their
financial advisor or through mail or through their website. They have Open end
Diversified Equity schemes, Open end Sector Equity schemes, Open end Hybrid
schemes, Open end Tax Saving schemes, Open end Income and Liquid schemes, closed
end Income schemes and Open end Fund of Funds schemes to offer.
Morgan Stanley Mutual Fund India
Morgan Stanley is a worldwide financial services company and its leading in the market
in securities, investment management and credit services. Morgan Stanley Investment
Management (MISM) was established in the year 1975. It provides customized asset
management services and products to governments, corporations, pension funds and nonprofit organizations. Its services are also extended to high net worth individuals and retail
investors. In India it is known as Morgan Stanley Investment Management Private
Limited (MSIM India) and its AMC is Morgan Stanley Mutual Fund (MSMF). This is
the first close end diversified equity scheme serving the needs of Indian retail investors
focusing on a long-term capital appreciation.
Escorts Mutual Fund
Escorts Mutual Fund was setup on April 15, 1996 with Escorts Finance Limited as its
sponsor. The Trustee Company is Escorts Investment Trust Limited. Its AMC was
incorporated on December 1, 1995 with the name Escorts Asset Management Limited.
Alliance Capital Mutual Fund
Alliance Capital Mutual Fund was setup on December 30, 1994 with Alliance Capital
Management Corp. of Delaware (USA) as sponsored. The Trustee is ACAM Trust
Company Pvt. Ltd. and AMC, the Alliance Capital Asset Management India (Pvt.) Ltd.
with the corporate office in Mumbai.
Benchmark Mutual Fund
Benchmark Mutual Fund was setup on June 12, 2001 with Niche Financial Services Pvt.
Ltd. as the sponsored and Benchmark Trustee Company Pvt. Ltd. as the Trustee
Company. Incorporated on October 16, 2000 and headquartered in Mumbai, Benchmark
Asset Management Company Pvt. Ltd. is the AMC.
Canbank Mutual Fund
Canbank Mutual Fund was setup on December 19, 1987 with Canara Bank acting as the
sponsor. Canbank Investment Management Services Ltd. incorporated on March 2, 1993
is the AMC. The Corporate Office of the AMC is in Mumbai.
Chola Mutual Fund
Chola Mutual Fund under the sponsorship of Cholamandalam Investment & Finance
Company Ltd. was setup on January 3, 1997. Cholamandalam Trustee Co. Ltd. is the
Trustee Company and AMC is Cholamandalam AMC Limited.
LIC Mutual Fund
42
Life Insurance Corporation of India set up LIC Mutual Fund on 19th June 1989. It
contributed Rs. 2 Crores towards the corpus of the Fund. LIC Mutual Fund was
constituted as a Trust in accordance with the provisions of the Indian Trust Act, 1882. .
The Company started its business on 29th April 1994. The Trustees of LIC Mutual Fund
have appointed Jeevan Bima Sahayog Asset Management Company Ltd as the
Investment Managers for LIC Mutual Fund.
GIC Mutual Fund
GIC Mutual Fund, sponsored by General Insurance Corporation of India (GIC), a
Government of India undertaking and the four Public Sector General Insurance
Companies, viz. National Insurance Co. Ltd (NIC), The New India Assurance Co. Ltd.
(NIA), The Oriental Insurance Co. Ltd (OIC) and United India Insurance Co. Ltd. (UII)
and is constituted as a Trust in accordance with the provisions of the Indian Trusts Act,
1882.
43
REGULATORY ENVIRONMENT
ASSOCIATION OF MUTUAL FUNDS IN INDIA (AMFI)
With the increase in mutual fund players in India, a need for mutual fund association in
India was generated to function as a non-profit organization. Association of Mutual
Funds in India (AMFI) was incorporated on 22nd August 1995.
AMFI is an apex body of all Asset Management Companies (AMC), which has been
registered with SEBI. Till date all the AMCs are that have launched mutual fund schemes
are its members. It functions under the supervision and guidelines of its Board of
Directors.
Association of Mutual Funds India has brought down the Indian Mutual Fund Industry to
a professional and healthy market with ethical lines enhancing and maintaining
standards.
It follows the principle of both protecting and promoting the interests of mutual funds as
well as their unit holders.
The objectives of Association of Mutual Funds in India
The Association of Mutual Funds of India works with 30 registered AMCs of the
country. It has certain defined objectives which juxtaposes the guidelines of its Board of
Directors. The objectives are as follows:
This mutual fund association of India maintains high professional and ethical
standards in all areas of operation of the industry.
It also recommends and promotes the top class business practices and code of
conduct which is followed by members and related people engaged in the
activities of mutual fund and asset management. The agencies who are by any
means connected or involved in the field of capital markets and financial services
also involved in this code of conduct of the association.
AMFI interacts with SEBI and works according to SEBIs guidelines in the
mutual fund industry.
Associations of Mutual Fund of India do represent the Government of India, the
Reserve Bank of India and other related bodies on matters relating to the Mutual
Fund Industry.
It develops a team of well qualified and trained Agent distributors. It implements
a programme of training and certification for all intermediaries and other engaged
in the mutual fund industry.
AMFI undertakes all India awareness programme for investors in order to
promote proper understanding of the concept and working of mutual funds.
At last but not the least association of mutual fund of India also disseminate
information on Mutual Fund Industry and undertakes studies and research either
directly or in association with other bodies.
The sponsor of Association of Mutual Funds in India

Bank Sponsored
44
SBI Fund Management Ltd.

BOB Asset Management Co. Ltd.
Canbank Investment Management Services Ltd.
UTI Asset Management Company Pvt. Ltd.
Institutions
GIC Asset Management Co. Ltd.
Jeevan Bima Sahayog Asset Management Co. Ltd.
Private Sector
Indian: Benchmark Asset Management Co. Pvt. Ltd.
Cholamandalam Asset Management Co. Ltd.
Credit Capital Asset Management Co. Ltd.
Escorts Asset Management Ltd.
JM Financial Mutual Fund
Kotak Mahindra Asset Management Co. Ltd.
Reliance Capital Asset Management Ltd.
Sahara Asset Management Co. Pvt. Ltd
Sundaram Asset Management Company Ltd.
Tata Asset Management Private Ltd.
Predominantly India Joint Ventures: Birla Sun Life Asset Management Co. Ltd.
DSP Merrill Lynch Fund Managers Limited
HDFC Asset Management Company Ltd.
Predominantly Foreign Joint Ventures: ABN AMRO Asset Management (I) Ltd.
Alliance Capital Asset Management (India) Pvt. Ltd.
Deutsche Asset Management (India) Pvt. Ltd.
Fidelity Fund Management Private Limited
Franklin Templeton Asset Mgmt. (India) Pvt. Ltd.
HSBC Asset Management (India) Private Ltd.
ROLE OF INTERMEDIARIES IN THE INDIAN MUTUAL FUND

INDUSTRY
1 The mutual fund industry in India started in 1964 with the formation of the Unit Trust
of India (UTI). In 1987, other public sector institutions entered this business,
And it was in 1993 that the first of the private sector participants commenced its
operations.
45
2 From the beginning, UTI and other mutual funds have relied extensively on
intermediaries to market their schemes to investors. It would be accurate to say
That without intermediaries, the mutual fund industry would not have achieved the depth
and breadth of coverage amongst investors that it enjoys today. Intermediaries have
played a pivotal and valuable role in popularizing the concept of mutual funds across
India. They make the forms available to clients, explain the schemes and provide
administrative and paperwork support to investors, making it easy and convenient for the
clients to invest.
3 Intermediation itself has undergone a change over the past few decades. While
individual agents provided the foundation for growth in the early years, institutional
agents, distribution companies and national brokers soon started to play an active role in
promoting mutual funds. Recently, banks, finance companies, secondary market brokers
and even post offices have also begun to market mutual funds to their existing and
potential client bases.
4 It is, thus clear that all types of intermediaries are required for the growth of the
industry, and their well-being, quality orientation and ways of doing business will have a
significant impact on how the mutual fund industry in India evolves in the future.
SWOT Analysis
STRENGTH
Good Brand Name of the company in all over India.
Strong Brands like ICICI in India and Prudential Plc in UK are the sponsors
of the company.
Sound financial resources of the company as well as sponsors.
Strong Communication Network all over the country.
Strong team of Fund Managers headed by Mr. Nilesh Shah who has rich
experience in fund management
WEAKNESS
Less promotional efforts by the company
Higher Employee turnover rate in the company.
Poor performance of some equity schemes in the past.
Lack of competitive products to suit clients investment
objective.
Lesser penetration in rural areas.
OPPORTUNITIES
Mutual Fund Industry as a growing industry in Indian Financial Market.
Mutual Fund Investment growing by Rs. 2500 crores every year in India
according to SEBI estimates.
Favorable government policy in the Budget 2005 for Mutual Fund Industry.
The untapped rural markets by almost all companies.
Development in other indirect channel of distribution in Mutual fund
Industry.
THREATS
46
Lower market share as compared to its competitors.

The number of players is increasing which further increases the
competition.
Product Innovation done by other Asset Management companies and is able
to collect large amounts.
Customer mindsets are still rigid and they mostly prefer traditional pattern
of investments.
INDUSTRY DETAIL
Financial system of a country invariably has a huge influence on the economy. The link
between an economys process and the financial system is reflected the economy
47
development, the institutional arrangement, the prevailing delivery system and the
intermediation process.
The Indian Financial System has been broadly divided into two segments, the organized
and the unorganized. The organized sector constitutes of Commercial Banks,
development FIIs, Insurance Companies and other NBFIs, including Mutual Funds, Unit
Trusts, etc. An important aspect of this system is the presence of public sector institutions
along with a very high degree of public ownership and control. The overall structure if
the 8Indian Financial System can be presented as below.
MINISTRY OF FINANCE
Financial Institutions
Reserve Bank of India
Term Lending
Institutions
Commercial
Banks
Investment
Institutions
Non Banking
Finance
Companies
Sectorial
Finance
SEBI
MF
VC
CM
State level
Financial
Institutions
Structure of Indian
Financial Markets
Financial institutions, as a participant of this financial system, help to realize the

opportunities for savings and real investment in the economy. As these FIs assist
financial deepening, growth of the economy and the growth of the GDP, per capita
income and the saving also influence them. Financial intermediaries also play an
important role in eliminating market imperfections, which arise out of non-dissemination
about borrows. Various devices can eliminate these distortions and it is in this respect
that financial arrangements such as issuing market for securities and financial
intermediaries play their role.
48
49
MARKETING
DEPARTMENT
MARKETING DEPARTMENT
MARKETING SCENARIO
50
The last few years have seen an increased attention to mutual funds across all genres of
investors big or small, individuals or corporate. The growing awareness of the
advantages that mutual funds offer over other investments avenues have been better
communicated and more understood.
A mutual fund is the ideal investment vehicle for todays complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become mature and information driven. Price
changes in these assets are driven by global events occurring in faraway places. A typical
individual is unlikely to have the knowledge, skills, inclination and time to keep track of
events, understand their implications and act speedily.
A mutual fund is answer to all these situations. It appoints professionally qualified and
experienced staff that manages each of these functions on a fulltime basis. Now, Mutual
Fund is new developing market. In fact, the mutual fund vehicle exploits economies of
scale in all three areas research, investment and transaction processing.
MARKET SEGMENTATION
Dont buy market share. Figure out how to earn it.
Market segmentation is an effort to increase a companys precision marketing. A market
segment consists of large identifiable group within a market with similar wants,
purchasing power, buying attitudes or buying habits. As ICICI PRUDENTIAL is a
service sector industry they introduce different schemes for different people. Each person
is different in nature and each have differ criteria for investment like risk factor, return,
liquidity, tax benefits etc.
So that ICICI PRUDENTIAL have introduced varieties of scheme like debt scheme,
balanced scheme, equity related scheme and each schemes have option to invest in SIP
(Systematic Investment Plan) which help investor to invest a specific amount for a
continuous period, at regular intervals so that investor has the advantage of rupee cost
averaging and also helps him save compulsorily a fixed amount each amount.
TARGET MARKET
ICICI Prudential Asset Management Company, (51%: 49%) a joint venture between
Prudential Plc, UK's leading insurance company and ICICI Bank Ltd, India's premier
financial institution. The joint venture was formed with the key objective of providing
the Indian investor mutual fund products to suit a variety of investment needs.
ICICI PRUDENTIAL Asset Management Company, have variety of scheme and each
scheme have different objective and different target market. Equity Mutual Fund
Scheme has target market of person who wants to take high risk and also expect high
return. Balanced scheme have target market of person who wants to take moderate
risk and expect average return and Debt scheme have target market of person who
wants to take less risk.
51
CUSTOMERS PROFILE
Prudential ICICI Asset Management Company, have variety scheme and each scheme
have different customer profile.
For Equity related scheme customer profile is young generation, for liquid scheme
customer profile is business man who wants to utilize their money in effective manner
for shorter period, in SIP (Systematic Investment Plan) customer basically are serviced
person who invest regularly and want to earn more than average return. Thus, Prudential
ICICI Asset Management Company, have introduced variety of scheme to suit need of
variety of customer.
POSITIONING STRATEGY
Positioning is the act of designing the companys offering and image to occupy a
distinctive place in the target markets mind.
Positioning starts with a product. A piece of merchandise, a service, a company, an
institution, or even a person. But positioning is not what you do to a product. Positioning
is what you do the mind of the prospect. That is, you position the product in the mind of
prospect. A companys differentiating and positioning strategy must change as the
product, market, and competitors change over time. Once the company has developed a
clear positioning strategy, it must communicate the at positioning effectively. There
should be no under positioning, over positioning, confused positioning or doubtful
positioning.
Prudential ICICI Asset Management Company, have positioning strategy of Dedicated
Relationship Manager and service. It is very right positioning strategy because there
is special Relationship Manager for all client base more than 5 lacs and for retail client
there is a channel called Financial Consultant. Financial consultants give service to all
clients and give them guidance about various schemes, which helps them to get right
scheme which suit their investment needs. There is research department at Mumbai who
published review sheet staff to update their knowledge that will help you to serve client
more effectively and efficiently.
PRODUCT DETAIL
A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is invested by the fund manager in
different types of securities depending upon the objective of the scheme. These could
range from shares to debentures to money market instruments. The income earned these
investments and the capital appreciation realized by the scheme is shared by its unit
holders in proportion to the number of units owned by them. Thus a Mutual Fund is the
most suitable investment for the common man as it offers an opportunity to invest in a
diversified, professionally managed portfolio at a relatively low cost. Anybody with an
52
investable surplus of a few thousand rupees can invest in Mutual Funds. Each Mutual
Fund scheme has a defined investment objective and strategy.
A mutual fund is the ideal investment vehicle for todays complex and modern financial
scenario. Markets for equity shares, bonds and other fixed income instruments, real
estate, derivatives and other assets have become mature and information driven. Price
changes in these assets are driven by global events occurring in faraway places. A typical
individual is unlikely to have the knowledge, skills, inclination and time to keep track of
events, understand their implications and act speedily.
A mutual fund is answer to all these situations. It appoints professionally qualified and
experienced staff that manages each of these functions on a fulltime basis. The large pool
of money collected in the fund allows it to hire such staff at a very low cost to each
investor. In fact, the mutual fund vehicle exploits economies of scale in all three areas
research, investment and transaction processing.
A draft offer document is to be prepared at the time of launching the fund. Typically, it
pre specifies the investment objective of the fund, the risk associated, the cost involved
in the process and the broad rules for entry into and exit from the fund and other areas of
operation. In India, as in most countries, these sponsors need approval from a regulator,
SEBI in our case. SEBI looks at track records of the sponsor and its financial strength in
granting approval to the fund for commencing operations.
A sponsor then hires an asset management company to invest the funds according to the
investment objective. It also hires another entity to be the custodian of the assets of the
fund and perhaps a third one to handle registry work for the unit holders of the fund. In
the Indian context, the sponsors promote the Asset Management Company also, in which
it holds a majority stake. In many cases a sponsor can hold a 100% stake in the Asset
Management Company (AMC).
E.g. Birla Global Finance is the sponsor of the Birla Sun Life Asset Management
Company Ltd., which has floated different mutual funds schemes and also acts as an
asset manager for the funds collected under the schemes.
As per SEBI regulations, mutual funds can offer guaranteed returns for a maximum
period of one year. In case returns are guaranteed, the name of the guarantor and how the
guarantee would be honored is required to be disclosed in the offer document.
Investment & You
Investment is never an easy process however, the experiences of various financial
experts suggest understanding of some basic concepts can enable one to make sound
investment decision. The following steps would enable you to get started on your path to
becoming a successful investor:
Identifying your financial needs and goals

The starting point of sound investment decision is to begin with a clear
understanding of ones own financial needs and goals. Typically, any financial
need and goal would translate into determining the tenure of your investment.
Therefore, all investment needs and goals can be translated into short term,
medium term and long term.
Understanding Investment Choices
53
Any investment can be classified into 3 basic assets classes i.e. cash, debt or equity.
Debt investments are those that promise a fixed return at the time of making
investments whereas in equity investment we become part owner of the company we
invest in. However, there is no particular rate of return indicated while investing.
Appropriate Mix of Various Investments

As you have seen all investments can be broadly categorized into equity, debt and
cash. Making an Asset Allocation Plan therefore, is all about determining the
proportion of investments in each of these categories. The key to investment
success lies in determining the appropriate mix of the above mention categories
and not just the individual investments that are done with in each category.
Understanding The Role of Mutual Funds

A mutual fund is nothing but a pool of money form numerous investors who wish to
save or make their earning work harder. As an investor, you own unit of mutual fund,
which represents proportionate ownership of the total investment, made by the fund.
CHANNEL OF DISTRIBUTION
Marketing channels are sets of interdependent organizations involved in the process of

making a product or service available for use or consumption. There are many level of
channel like zero level, one level, two levels and 3 levels. Channels normally describe a
forward movement of products. One can also talk about backward channels. Several
intermediaries play a role in backward channels, including manufactures redemption
centers, community groups, and traditional intermediaries.
Prudential ICICI Asset Management Company is service Provider Company so it uses
one level marketing channel for investment product distribution. Sub-brokers work as
intermediary between consumer and company. Company has both forward and backward
flow of activity through channel. Company distributes stationery, brokerage, and
information forward to its sub-broker. The sub-brokers send filled forms, queries, and
amount of investment etc. back to the company.
54
PRICING POLICY
Prudential ICICI Asset Management Company is service Provider Company so There is
Entry Load and Exit Load for each scheme. Generally Equity funds have 2.25% for <
5Crs, Nil for => 5Crs, sector specific fund have Entry Load of 2.25% for <3Crs and Nil
for => 3Crs, for MIP <10 Lac 0.5% up to 6 months and SIP have Entry Load of 1% and
Exit Load of 1.25% if they redeem before 2 years. Thus each scheme has different Entry
Load and Exit Load.
PROMOTIONAL TOOLS
The objective of advertising of ICICI PRUDENTIAL AMC is to create awareness about
services and scheme of ICICI PRUDENTIAL among investors and sub-brokers and
increases sub-brokers of ICICI PRUDENTIAL AMC.
Company does give advertisement in media like TV, Newspapers, and Magazines etc.
when in introduce new scheme or mutual fund IPO and through direct marketing they
advertise and create awareness about their services and new schemes. ICICI
PRUDENTIAL also do presentation about various schemes so that investors can know
more about their product and services.
Another tool of promotion of ICICI PRUDENTIAL AMC is Public Relation involves a
variety of programs designed to promote or protect a companys image or its individual
products. ICICI PRUDENTIAL has PR department monitors the attitudes of the
organizations publics and distributes information and communications to build goodwill.
They also perform following function:
Press relation: Presenting news and information about the ICICI

PRUDENTIAL AMC in the most positive light.
Product publicity: Sponsoring efforts to publicize specific products.
Counseling: Advising management abut public issues and company

positions and image.
INNOVATIVE PRACTICE
Relationship Manager for all client base more than 5 lacs. Relationship marketing is
based on the premise that important accounts need focused and continuous attention.
Relationship marketing helps to judge which segments and which specific customers
will respond profitably to relationship management.
55
OPERATION
DEPARTMENT
56
OPERATION DEPARTMENT
Operation management, which was formerly considered as manufacturing management
only, now it is known as operations management. Many non-manufacturing
organizations providing services like hospitals, banks, transportation, farming,
warehousing etc. are now covered by operation management.
An operation by formal definition is a process of changing inputs into outputs, with the
creation or adding of value to some entity. The processes of alteration or transportation
or storage or inspection or any combination thereof add value to an entity is rightly
called operations. The growth of service industry has brought with it the term
Operations Management.
ICICI PRUDENTIAL Asset Management Company is a services sector industry has
some unique features, different from those, which has manufacturing base. These are:
Non-inventorial output of service, since generally no stock is produced.
Variable demand.
Labour-intensive operations mostly.
Location of service is dictated by the location of the users.
LOCATION DETAILS
Site selection is an important activity, which decides the fate of the business. A good
location may, reduce the cost of service and distribution helps in elevating either the
competitive strength or the profit margin of the business.
ICICI PRUDENTIAL has Location is in the heart of the city where service is easily
available for all customer and easy access compare with other place that available in city.
Location has major impact on success or failure of operation.
Advantages of this type of location compare to competitors:
Less service cost and
It helps to reduce distribution cost

LAYOUT DETAILS
There has a optimum arrangement of planning and has a proper flow of man and
material, operating equipment like PC, storage space, material handling equipment and
all other supporting service along with the design of best structure to contain all these
facilities.
PLANNING AND CONTROL
It is useful for effective utilization of resources, to achieve organization goal and
objectives with respect to quality service, cost control timely service. Other objective is
57
to co-ordinate with other department to ensure continuous quality service. There is a

proper planning before introducing new scheme and there is special research department
who carries out analysis of market and there is a fund manager who carrier out all
planning for investing in various sector and he is also responsible controlling cost of
transaction so that it can give return to investors.
MAINTENANCE
Hence ICICI PRUDENTIAL is the service sector industry so that all work is carried out
in computer. So there is only need to maintain computer machinery and furniture of
organization.
PROCUREMENT
Hence ICICI PRUDENTIAL is the service sector industry so that procurement is only
for computer machinery and computer stationary and other stationary that is used in daily
work. Procurement of computer machinery is done through central contract of main
branch and procurement for stationary is done through local stationary distributor.
STORE MANAGEMENT
Hence ICICI PRUDENTIAL is the service sector industry so that storage is only for files
and fact sheet and other document that published by AMC.
58
FINANCIAL
DEPARTMENT
59
FINANCIAL DEPARTMENT
Finance department is very important for any unit because as we know that Finance is
the blood of business without which, a unit cannot run. It is impossible to understand
any business activity without finance so management of finance must be given important
in the organization.
According to classical approach Finance function is a task of procuring funds needed by
an enterprise which are most favorable in light of its objective.
But according to modern approach Finance function is procurement of funds &
effective utilization of funds in best possible manner.
In finance department, a finance manager performs the financial function & uses finance
management to run the firm effectively & efficiently.
Finance management deals with following objectives:
INVESTMENT DECISION
FINANCIAL DECISION
DIVIDEND POLICY DECISION
FINANCIAL PLANNING
Financial planning aims to match the needs of the company with those of investors with
a sensible gearing of short term & long term fixed interest securities.
Financial planning can be formulated for three different periods;
1. SHORT TERM PLANNING:
It is concerned with meeting day-to-day cash requirement basically concerted
with short period.
2. MEDIUM TERM PLANNING:
Medium term planning includes both i.e. Planning for working capital as well
as requirement of fixed capital.
3. LONG TERM PLANNING:
It is basically concerned with planning of funds required for long period as well
it is concerned with capital budgeting decision to invest in different proposals.
ICICI PRUDENTIAL amc has effective financial planning undertaken by top
management along with divisional finance manager. They undergo medium term & long
term financial planning.
60
CAPITALISATION
Capitalization refers to funds procured by the company by issuing various types of
securities i.e. Ordinary shares, preference share, bonds & debentures. Capital structure is
not same for every company because it depends on May factors like type of business,
ability of firm to undertake risk, money required etc.
UNDER CAPITALIZATION
1. When company is in a position to pay a much higher rate of dividend on ties
shares as compared to other companies who are engaged in the same business &
having same degree of risk.
2. The book value of the companys share is lesser than the real value of share.
OVER CAPITALIZATION
1. When a company is not in a position to pay dividend or interest on its shares &
debentures at fair rates
2. When book value of companys share is higher than real value
ACQUISITION & UTILIZATION OF FUNDS
Hence ICICI PRUDENTIAL Asset Management Company is a service sector industry so
that investing in market does acquisition of funds done by introducing various schemes
and utilization of these fund and following is the total AUM (Asset Under Management).
61
As on June 2006
Particulars
Diversified
Tax Planning
Index
Sector
Total Equity
FMP
MIP
Debt ST
Income
Total Debt
Balanced
Gilt LT
Gilt ST
Total Gilt
Liquid
Total
(In Crores.)
ICICI PRUDENTIAL
1593.8546
47.9336
2.0978
179.0116
2107.78
1551.236
823.2623
479.4336
3778.4525
6932.384
469.6412
412.9397
150.5677
563.5074
6961.6842
17095..89
(Above Table showing Acquisition and Utilization of fund of ICICI PRUDENTIAL)

Fund Manager does utilization of fund, ICICI PRUDENTIAL AMC has variety of
scheme and each scheme has different Fund Manager who is responsible of investing
money into market and also responsible to give return to investors.
62
Ratio
Current
ratio
EPS
Div
payout
to unit
holders
Div.
payout
Formula
Current
asset/curre
nt liability
Total
profit/unit
capital
Div.
paid/unit
capital
RATIO ANALYSIS
Growth Fund
2006
2005
2438.37/1818.15=1.34
1275.46/1066.90=1.19
23311.45/7700.63=3.02
14126.20/9981.01=1.41
941.81/7700.63=0.12(12
%)Div. paid/unit capital
621.86/9981.01=0.62(6.
2%)
Div.
941.81/23311.45=0.04(4 621.86/14126.20=0.04(4
paid/net
%)
%)
profit
Dividend/t
428.45/18041.54=0.24(2. 717.53/14882.68=0.48(4
otal
4%)
.8%)
income
Div. to
total
income
Profit on
sales
redempti Profit/sales 13834.17/18041.54=0.77
on to
redemption
(77%)
total
income
12074.52/14882.68=0.8
1(81%)
(Above Table Showing - Ratio analysis of ICICI PRUDENTIAL AMC)
63
HUMAN
RESOURCE
DEPARTMENT
64
HUMAN RESOURCE DEPARTMENT

Human Resource Management function that helps managers recruit select, train
and develop members for an organization. Obviously, HRM is concerned with the
peoples dimension in organizations.
MANPOWER PLANNING AT ICICI PRUDENTIAL
Human Resource Planning is the process by which an organization ensures that it has the
right number and kind of people, at the right place, at the right time, capable of
effectively and efficiently competing those tasks that will help the organization achieve
its overall objectives. Human Resource Planning translates the organizations objectives
and plans into the number of workers meet those objectives. Without a clear-cut
planning, estimation of an organizations human resource need is reduced to mere
guesswork.
ICICI PRUDENTIAL Asset Management Company considers several factor in HRP are
strategy of company, organization planning about new schemes, environment
uncertainties, time horizons, and nature of jobs being filled. By considering these entire
factors it helps to ICICI PRUDENTIAL to coping with change, creates highly talented
personnel, and helps to determine futures needs.
Manpower planning is needed with respect to persons who can work as sub-broker for
the companies. Companies focused on Insurance Advisor and post office agent, Tax
consultants and CAs for making sub-broker. ICICI PRUDENTIAL AMC Forecast HR
Demand it estimates the future quantity and quality of people required. It uses
forecasting technique that is Management Judgment that involves bottom-up or topdown approach. After forecasting company forecast about HR supply that may be from
Existing human resource, internal sources or External sources.
RECRUITMENT
The upper level members like zonal managers, regional managers, branch managers and
senior executives are recruited. The regional manager has authority to select lower level
employee like peon, marketing executives, financial accountant etc. by approval of zonal
manager.
ICICI PRUDENTIAL AMC recruits through following sources:
Internal Sources:
Present Employees
Employee Referrals
65
Previous Applicants
External Sources:
Advertisement
Campus interview
Consultants
Walk-ins
SELECTION
Selection is a process to select a fixed number of personnel from a large number of

applicant received by employees, seeking the job and selecting those who suitable for the
given job selection includes a number of steps. The purpose of selection is to pick up the
right person for every job.
A scientific procedures of selection, requires 2 things:
1. Knowledge regarding the qualities which a person should posses in order to do
the given job properly
2. The evaluation of qualities possessed by a candidate for the job.
Prudential ICICI has adopted the following steps for selection procedure:
PRELIMINARY INTERVIEW
The main purpose of preliminary interview is to screen out those who are unsuitable.
Those interviews are quite short. If candidates are found suitable then an application
blank may be given to him to fill up and return.
In ICICI PRUDENTIAL AMC regional manager first interviews candidates, and if
selected than he is interviewed by zonal manager & if he is found suitable than an
application blank is given to them.
APPLICATION BLANK
Here the applicants are asked to complete a blank that provides space for him to record
data relating to the name of candidates, experience etc. The application blank must not be
too lengthy. In Pru ICICI AMC this application blank is forwarded to Mumbai branch to
hr department.
INTERVIEW
After the application blank reaches to the HR Department Mumbai, a telephonic
interview is conducted by HR Manager to see that the regional manager & zonal
manager has made the right choice or not.
MEDICAL CHECK UP
66
If the candidates clears all the above stages, company checks his medical report the basic
purpose of medical check-up is to determine the job for which candidate is fit or not.
REFRENCES
Checking of references is an important part of selection process. The company prefers to
select the candidate within the group or if the candidate gives the name of reputed person
as his references.
FINAL SELECTION
If the candidate passes successfully from the above stages he is finally selected for the
post. The final selection lies with the regional manager.
PLACEMENT
The last stage in selection process is the placement of candidate. After the final selection
is done, the selected candidate is finally placed on the job.
TRAINING
THERE ARE TWO TYPES OF TRAINING PROGRAMS:
ON THE JOB TRAINING
OFF THE JOB TRAINING
Continuous training and upgrading technical, behavioral and managerial skills is a way
of life in ICICI PRUDENTIAL AMC. ICICI PRUDENTIAL AMC encourages agent or
sub-broker to hone their skills regularly to enable them to face the challenges of the
changing requirements of customers that fit market up and down.
Training needs analysis is done on a regular basis and systematic methodologies are
ensured that skills and capabilities of all agents are constantly upgraded to enable them
to perform in the challenging work. There is special training session at regular time
period in local branch to all financial consultant and agents about new scheme and to
improve their effectiveness.
PERFORMANCE APPRAISAL
It is the systematic evaluation of the individual with respect to his or her
performance on the job and his or her potential for development.
Objective of Performance appraisal if for Developmental uses for agents and Financial
Consultants, for wages, transfer, promotion, for documentation and for organizational
purpose like Human Resource Planning, Job analysis and for training and development.
ICICI PRUDENTIAL first set the objective of performance appraisal then in establish
job expectation and then decide whose performance should be rated and who the raters
are. Basically raters are immediate supervisor, subordinates, peers, clients. For
67
Performance Appraisal modern method is used like MBO (Management By Objectives)

and 360 appraisal. But there is some limitation like Hello effect, Bias, Perception factor,
Spill over etc
RESEARCH
METHODOLOGY
68
RESEARCH
A COMPARITIVE ANALYSIS
OF MF V/S
OTHER INVESTMENT
OPTIONS
HERE I HAVE COMPARED MUTUAL FUND WITH
COMPANY DEPOSIT V/S MUTUAL FUND

BANK DEPOSIT V/S MUTUAL FUND
BOND V/S MUTUAL FUND
NATIONAL SAVINGS CERTIFICATE V/S MUTUAL FUND
PPF V/S MUTUAL FUND
INSURANCE V/S MUTUAL88 FUND
GOLD V/S MUTUAL FUND
PROPERTY V/S MUTUAL FUND
DIRECTY EQUITY V/S MUTUAL FUND
69
COMPARISON OF MUTUAL FUND VS. OTHER

INVESTMENT OPTION
Choice
Level of Risk
Return
Liquidity
Very low
9 to 9.5%
High
High
10 to 13%
Low
Medium
9 to 11%
Low
Low
11 to 12%
Poor
Poor
Average
Average
12 to 13%
Poor
Average
Average
Very low
9 to 10%
Poor
Average
Very high
Low
7 to 9%
Very high
High
Low
Medium
9 to 12%
High
High
High
Equity
High
18 to 25%
High
High
High
Stocks
Very high
20 to 30%
Medium
High
Average
Bank deposit
Saving Bank
FD - NBFC
FD - mfg
firms
AAA bonds
PSUs
Corporate
Tax free
Mutual Funds
- (open ended)
Liquid / Cash
Debt
70
Convenience Tax efficiency

Average
Ranges from
poor to high
Average
Average
Low
Low
COMPARATIVE ANALYSIS
Company Fixed Deposits versus Mutual Fund
Another oft-used route to invest has been the fixed deposit schemes floated by
companies. Credit rating of the fixed deposit program is an indication of the inherent
default risk in the investment. Here the investors rely on intermediaries who more often
than not, dont reveal the entire truth. Secondly, liquidity is a major problem with the
amount being received months after the due datesThe moneys of investors in a mutual
fund scheme are invested by the AMC in specific investments under that scheme. These
investments are held and managed in trust for the benefit of the schemes investors. On
the other hand, there is no such direct correlation between a companys fixed deposit
mobilization, and the avenues where it deploys these resources.
A corollary of such linkage between mobilization and investment is that the gains and
losses from the mutual fund scheme entirely flow through to the investors. Therefore,
there can be no certainty of yield, unless a named guarantor assures a return or, to a
lesser extent, if the investment is in a serial gilt scheme. On the other hand, the return
under a fixed deposit is certain, subject only to the default risk of the borrower.
Both fixed deposits and mutual funds offer liquidity, but subject to some differences:
The provider of liquidity in the case of fixed deposits is the borrowing company. In
mutual funds, the liquidity provider is the scheme itself for open-end schemes, or the
market in the case of closed-end schemes.
The basic value at which fixed deposits are encashable is not subject to market risk.
However, the value at which units of a scheme are redeemed entirely depends on the
market. If securities have gained in value during the period, then the investor can
even earn a return that is higher than what she anticipated when she invested.
Conversely, she could also end up with a loss.
Early encashment of fixed deposits is always subject to a penalty charged by the
company that accepted the fixed deposit. Mutual fund schemes also have the option
of charging a penalty on early redemption of units (by way of an exit load). If the
NAV has appreciated adequately, then despite the exit load, the investor could earn a
capital gain on her investment.
Banks Deposit versus Mutual Fund

71
Bank fixed deposits are similar to company fixed deposits. The major difference is that
banks are more stringently regulated than are companies. They even operate under
stricter requirements regarding Statutory Liquidity Ratio (SLR) and Cash Reserve Ratio
(CRR) mandated by RBI.
While the above are causes for comfort, bank deposits too are subject to default risk.
However, given the political and economic impact of bank defaults, the government as
well as Reserve Bank of India (RBI) tries to ensure that banks do not fail.
Further, the Deposit Insurance and Credit Guarantee Corporation (DICGC) protect bank
deposits up to Rs. 100,000, so long as the bank has paid the required insurance premium
of 5 paise per annum for every Rs. 100 of deposits. The monetary ceiling of Rs. 100,000
is for all the deposits in all the branches of a bank, held by the depositor in the same
capacity and right. With the banks offering little above 9.5 percent in their fixed deposits
for one year, the yields have come down substantially in recent times. Add to this, the
inflationary pressures in economy and you have a position where the savings are not
earning. The inflation is creeping up, to almost 6.5 percent at times, and this means that
the value of money saved goes down instead of going up. This effectively mars any
chance of gaining from the investments in banks. And one should think of another
investment option offering higher returns.
Bonds versus Mutual Fund

The Government of India for payment of interest as well as principal guarantees the RBI
bond. There is no maximum limit on investment and the minimum investment should be
of Rs.1000. Individual, HUF, and Charitable Institutions & University can make the
investments in this bond. The tenure of the bond is 6 years. The bond will carry an
interest of 8% p.a. As in the case of fixed deposits, credit rating of a bond or debenture is
an indication of the inherent default risk in the investment. However, unlike fixed
deposits, bonds and debentures are transferable securities.
While an investor may have an early encashment option from the issuer (for instance
through a put option), liquidity is generally through a listing in the market.
Implications of this are:
If the security does not get traded in the market, then the liquidity remains on paper.
In this respect, an open-end scheme offering continuous sale/re-purchase option is
superior.
The value that the investor would realize in an early exit is subject to market risk.
The investor could have a capital gain or a capital loss. This aspect is similar to a
mutual fund scheme.
It is possible for an astute investor to earn attractive returns by directly investing in the
debt market, and actively managing the positions. Given the market realities in India,
however, it is difficult for most investors to actively manage their debt portfolio. Further,
at times it is difficult to execute trades in the debt market even when the transaction size
is as high as Rs. 1 crore. In this respect, investment in a debt scheme would be beneficial.
Debt securities could be backed by a hypothecation or mortgage of identified fixed
and/or current assets, e.g. secured bonds or debentures. In such a case, if there is a
72
default, the identified assets become available for meeting redemption requirements. An
unsecured bond or debenture is for all practical purposes like a fixed deposit, as far as
access to assets is concerned.
A custodian for the benefit of investors in the scheme holds the investments of a mutual
fund scheme. Thus, the securities that relate to a scheme are ring-fenced for the benefit
of its investors.
NSC versus Mutual Fund

This scheme is available through out the year. It is open to single, joint, minor with
parent/guardian, HUFs. It is one of the popular taxes saving instrument. The NSCs have
a maturity period of 6 years. The certificates are easily transferable from one person to
another through the post office. One can avail of a loan against the certificates by
pledging it to the bank. The certificate can be encased from the issuing post office on the
due date by simply discharging the certificates at the back. It is safe to invest in this
instrument, as it is government-backed.
Tax benefit: Rebate under section 88 and exemption can be claimed under section 80L
for interest accrued on the NSC. Interest accrued for any year can be treated as fresh
investment in NSC for that year and tax benefits can be claimed. From this year the
benefit of 80L has been removed.
Interest rate - 9%
Investment Limit:
Min Amount
Max Amount
Denominations
Rs. 100/- and additional investment in multiples of Rs.

100/No Limit
Rs. 100/-, 500/-, 1,000/-, 5,000/-, 10,000/-, 50,000/-
Liquidity: Six year lock-in but premature encashment can be done.

If encased prematurely, within a year of issue, then only the face value is given. If
encased after a year but before 3 years, then simple interest on the face value, at the rate
applicable from time to time, will be paid.
The most important feature is the ideal investment horizon. Mutual fund is more liquid
than NSC and money invested in mutual funds can be withdrawn at any time.
PPF versus Mutual Fund

A PPF account can be opened at anytime during the year. It is safe to invest in the
instrument, as it is government-backed. Apart from a Post Office, a PPF account can also
be opened in SBI & its associates and other select nationalized banks. It can be held by
single, joint, minor with parent/guardian and HUF
Investment Limit
Min Amount Rs. 500/- (And multiples of Rs 5/-.)
Max Amount Rs. 70,000/Interest
Deposits in the account earns an interest of 8% per annum compounded annually. Interest
73
is payable on the lowest balance between the fifth day and the last day of the calendar
month.
Nomination
One or more person can be nominated. The nomination facility is also available in
respect of an account opened on behalf of an HUF.
Maturity
The normal maturity period is 15 years from the close of the financial year in which the
initial subscription was made. An Account, on the expiry of fifteen years, may be
extended for a period of five years at a time.
Tax benefit
The amount deposited and interest earned on it (including interest during the extension
period) is completely exempted from income tax u/s 10(11) and the entire deposit in the
account is exempted from wealth tax.
The annual contribution up to Rs 70,000 is eligible for rebate u/s 88.
The important feature is the initial investment. An investor should be clear how much
initial investment is needed.
Gold versus Mutual Fund

Gold is valued in India as a savings and investment vehicle and is the second preferred
investment after bank deposits. Eternally attractive to mankind, gold has found its
principal use as a store of value. Its beauty has made it popular in decoration. Gold has
also become an increasingly important industrial metal. Because of its rarity and its
durability, gold has been almost universally acceptable as money for thousands of years.
Returns in the gold are near to inflation. But since last 10 years gold has failed to beat
even inflation rate. And people were also facing problem of storage and liquidity, and
gradually gold became less attractive for investment purpose. And people have started
thinking of another investment option, which could give hedge against inflation and
better return with liquidity.
Insurance versus Mutual Fund

The primary objective of an insurance product is protection. The whole reason why it has
evolved as a savings plan in the minds of certain people is because there is a significant
savings component attached to it; however, it is still not the primary purpose of the plan.
Second, there are various kinds of insurance products; the element of protection in each
varies. Over the past year mutual funds have delivered returns that are higher than what
unit-linked insurance plans have, proving to be a better investment vehicle in the process.
However, Mutual Fund and Insurance are not comparable because Insurance, whether it
is unit-linked or otherwise, is not a pure savings product, which a mutual fund is.
Another thing is the probability of achieving stated returns. Weather unit linked products
are able to generate returns or not, is also questionable? Taxation benefits are also
important in case of Unit Linked Product. In comparison with Unit Linked, Mutual fund
provides greater tax benefit with capital appreciation. So once the person is insured he
should much invest in mutual funds.
74
Real Estate versus Mutual Fund

There are various types of properties are there. Such as, office, housing, retail, industrial,
warehousing, hotel, etc Investment in real estate requires a great amount of effort and
temperament. Because investment in real estate requires huge investment outlay, and
there is very low liquidity in real estate. Economic dynamics directly affect each of the
property types differently. Real Estate is relatively slower to respond to changes in the
economy as compared to many other asset classes. Knowing the background of a market
and property type within the market can help determine the risks and cycle length of a
market. Features of property are
1. Huge Initial Investment is required
2. Lock-in-period\Liquidity
3. Risk Involved
In comparison with property mutual fund offers very good equity oriented scheme. It
provides greater return with the flexibility and liquidity
RISK RETURN PAYOFF MATRIX

Feature
Mutual fund
Suggested
asset
Mutual Fund
Advertising
Inflation
Hedge.
Floating Rate
Fund
Better risk-return
payoffs
Equity, Balanced
Fund
Huge Invest. No reqd.,

Liquidity
FMPs, STPs
Higher PTR, Liquidity
Gilt fund, FMPs
Higher PTR, more

Liquidity
ELSS scheme
Better return with more

liquidity
ELSS, Pure
Equities
Higher return with

more liquidity
Pure Equities,
Diversified,
Sector
Better Risk mngt,

research strength,
Diversification
Asset
Class
Risk
Return
Gold
Low
Around
Inflation
Level
Property
Low
Higher than
Inflation
Bank FD
Low
Nominal
Interest
Huge Initial
Investment,
Time??
Decent payoff
Very passive
RBI
Bond
Very
Low
8% Taxable
6 Yr. Lock in
PPF
Low
8% Tax-free
Insurance
Low
Fixed on
Lower side
Equity
High
Potentially
high
5 Yr Lock in
15 Yr
Maturity
Not a Pure
Investment
Product
Huge trade off
Involves
Efforts
EQUITY THROUGH MUTUAL FUND
75
DIRECT EQUITY
Nature of Investment
High Risk High Return Fund
Equity is means Two words Equality & Ownership i.e. owners capital. A person who
has invested money in any company considered to be the owner of the company.
Ownership because you own shares that contributed by the initial capital. Whole capital
is divided into small parts. An essential characteristic of equity market is that equities can
increase significantly in value and can also fall significantly in value. If the company is
successful, its share value increases and your investments are worth more. Additionally,
if the company makes a profit and does not need to reinvest the money, it may pay
dividends to its shareholders.
Equity market is highly volatile because it affected by so many factors. So it requires
constant research, attention, and efforts. Investment equity is subject to market risk. No
doubt there are other risk are also attached with it. Market risk is the default risk. Return
in the equity market is not guaranteed because of its vary nature.
It's important to realize that the share price of a company can go up and down for a
variety of reasons:
The performance of the company itself
The overall market conditions and the views of investors
Currency fluctuations that affect the value of the rupee and hence the value
of investments made in global companies and markets
For this reason, equities are considered to be a higher risk instrument than cash and
bonds but they generally offer the best prospects for growth, if you are able to invest for
the long term. By choosing companies that regularly issue a dividend, it's also possible to
create regular income.
Needs what
An Economy is affected by so many factors. There are so many macro parameters also
affecting the economy such as, Demand & Supply, Per Capital Income, Oil Price,
Political Environment, Natural disaster etc. And because of these there is high fluctuation
in the share market. In order to reduce risk and vitality it requires constant research. A
research of company and industry. There are two types of risk. Business Risk and
Financial Risk. Business risk is uncontrollable and financial risk is controllable up to
some extend. So one should take lot of care before investing in equity market. Past
performance may or may not be sustained in the future. So only on the basis of past
performance one should invest, it may or may deliver as it has delivered in the past.
1. Time: The person who is investing in equity market must have time because equity
market is highly volatile, and in order to get desired return he should find time to be
in touch with market. Timing is more important than time.
2. Training: Because of its varying nature, Equity market requires constant training and
practice. Investor should be aware of market movement as well as sectoral
movement. Fashions come and go and investor should be aware of these things.
76
3. Temperament: Temperament is also important in the equity market. A share can

touch can go high and low but the investor should have long term view and should be
worried about short time movement.
Suited for whom

As Investment in equity market is subject to market risk, one should be expert in this
field. Investment in Equity Market requires:
A person with high risk appetite who get the benefit of owners capital
A HNI (High Net worth Individuals) who has money to invest in diversified
portfolio.
Minimum investment amount is depends upon the share price and no of share.
Investor with long-term time horizon and who should not worry from short time
fluctuation.
Investor who has patience and knowledge about the share market movement.
Risk-Return Tradeoff
Deciding what amount of risk you can take while remaining comfortable with your
investments is very important. In the investing world, the dictionary definition of risk is
the chance that an investment's actual return will be different than expected. Technically,
this is measured in statistics by standard deviation. Practically, risk means you have the
possibility of losing some or even all of your original investment. The risk/return tradeoff
is an effort to achieve a balance between the desire for the lowest possible risk and the
highest possible return. This is demonstrated graphically in the chart below.
RISK RETURN TRADE

OFF
R
E
T
U
R
N
Low risk
Low Return
High risk
High Potential
Return
Standard Deviation (Risk)
77
MUTUAL FUNDS
Nature of Investment
A mutual fund is a collection of stocks and bonds. When you buy a mutual fund, you are
pooling your money with a number of other investors, which in turn enables you (as part
of a group) to pay a professional manager to select specific securities for you. Mutual
funds are all set up with a specific strategy in mind, and their distinct focus can be nearly
anything: large stocks, small stocks, bonds from governments, bonds from companies,
stocks and bonds, stocks in certain industries, stocks in certain countries, and the list
goes on.
The primary advantage of a mutual fund is that you can invest your money without
needing the time or the experience in choosing investments.
Suited for whom
Mutual fund offers investment option for all. It has product for to cater all age of people
whether child or old age people. It has product to cater needs of service man, a
businessman, HNI. Mutual fund caters needs each and every kind of investor whether it
is lower class, medium class, or upper class investor.
RISK RETURN TRADE OFF
78
Investmenthorizon
Sector funds
Growth Funds
R
E
T
U
R
N
Index,Activediversified
Balanced Funds
RatioofDebt:Equity
Debt Funds
LiquidFund
RISK
Investment amount needed
Mutual fund is kind of where anybody can invest. Mutual fund offers different product
different kind of needs. Even a small investor wants to investment he can investment in
SIP with minimum of Rs. 250 per month\quarter. And if any big investor wants to
investor than he can also invest. There is maximum limit on investment. He can invest as
much as he wishes.
Scheme Wise Return

1.
Diversified Equity Funds Return
Name of
scheme
Franklin
India
Prima
Franklin
India
Blue-chip
Reliance
Launch
date
1
3 month
month
Return
Return
1 year
Return
3 year
Return
5 year
Return
Since
Launch
November
1993
2.71
15.06
67.39
64.27
30.94
24.41
November
1993
1.59
7.67
26.38
41.13
18.39
27.59
October 95
4.35
14.50
45.48
67.87
31.40
26.26
79
growth
Tata pure
Equity PE
Tata Pure
Equity
HDFC
Equity
HDFC
Capital
Builder
HSFC
Equity
2.
June 2004
3.16
8.64
44.94
May 1998
1.77
9.62
38.79
44.29
15.83
32.41
Dec 1994
3.60
10.26
39.47
45.77
22.04
20.85
Jan 1994
3.41
12.28
69.48
51.07
23.24
12.58
Dec 2002
0.98
7.44
39.53
79.41
ELSS (Equity Linked Saving Scheme)
NAME OF SCHEME
Birla Equity Plan
HDFC Long Term Advtg.
HDFC Tax saver
Magnum Taxgain
ICICI PRUDENTIAL Tax
Sundaram Tax Saving
UTI Equity Tax Saving
3.
Launch
Date
Feb 1999
Dec 2000
May 1996
March 1993
Aug 1999
Nov 1999
Dec 1999
RATING
***
*****
*****
**
****
***
****
1 YEAR
RETURN
30.25
44.24
58.12
80.76
61.90
46.97
20.19
EXPENSE
RATIO
2.48
2.50
2.44
2.24
2.15
2.18
2.50
Sector Scheme Return
Information Technology Fund

1 month 6 month 1 Year 3 Year 5 Year
Return Return Return Return Return
Alliance New Millennium
-2.20
15.14
30.88
22.68
-1.52
DSMPL Technology
-3.03
12.64
23.94
26.20
Franklin InfoTech
-6.63
3.49
29.31
20.02
5.57
Kotak Tech
6.45
1.97
23.44
18.70
Name of scheme
80
Magnum IT
UTI Software
-2.64
-2.50
6.72
5.01
32.65
24.31
15.95
14.62
-9.93
-8.70
Superiority of Mutual Funds

From the above data it is clear that mutual fund is better compare to other investment
avenues. It provides benefits like Professional Management, Diversification, Return
Potential, Tax benefit, Liquidity, Convenience, Low cost, and no of choices.
Use of technology and innovative concept make more superior to mutual funds. It is
rightly said that Innovation is the key to survival. There has been so much innovation
taking place in the mutual fund industry. Such as:
Product Innovation
FMP for risk averse investors
Floating rate funds to counter volatility in the debt market.
Asset allocation to suit varied investor profiles.
P\E ratio funds asset allocation with triggers.
Exchange traded funds to capture intra day volatility
Niche products like childcare plan with add on like Insurance and scholarships.
Principal protection plan for capital preservation
Sector specific scheme such as FMCG fund Information Technology Fund and
Banking Fund
Fund of funds to diversify and derive the benefit of better returns out of the best
performing funds.
Service Innovation
Daily divided facility to provide tax efficiency

Third party checks and pre-denominated checks
T+1\T+0 redemption in debt\liquid funds
Direct debit\credit facilities
Distribution front
Postal network to distribute mutual funds
Retain distribution of MF through NSE.
Increasing reach through collection center and third party outlets like direct AMC
servicing outlets.
Technology innovation
Use of technology has made mutual fund investment much easier.
Networking of branches to provide improved customer service and online
information.
Call centers disseminate information and handle investor queries.
Information and transaction capability on the
- Internet
81
- Phone
Website and SMS to provide routine information.
Other facilities like
- Direct credit facility
- Online purchase, direct through demat
FINDINGS & CONCLUSION

A lesson to be learnt from the above analysis is that mutual fund is indeed good product
offering higher return many other benefits. Still the investor education is key, the Indian
investor is not much aware about the mutual funds and mutual funds contributions 5.98%
of GDP while in USA it is 67.07. So the investor educations play important role in the
development the mutual fund industry.
A Lesson to be learnt as successful investor
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 expectations will only
bring pain. So one should assess his or her risk appetite and than to choose investment
avenues.
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 offer
document and fact sheets that mutual fund companies provide on their funds.
Beware of past performance and predict the future performance:
82
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. Many a times investor, just by past
performance invests in the scheme and may get worse return. In mutual fund and equity
past performance my or may not be sustained in the future, and he should keep in his
mind, than go for investing.
Invest. Dont speculate:
Many investors used to speculate in mutual fund, mutual fund is not product for
speculation. One should have long-term view by investing in mutual fund and should
have patience. 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 is the best option unless there are
compelling reasons to exit.
Dont put all the 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 and some portion in cash. Cash on hand necessary because he may
need cash in case of sudden hospitalization or for purchasing unplanned holiday.
Diversification even in any particular asset class (such as equity, debt) is good. Not all
fund managers have the same acumen of fund management and with identification of the
best man being a tough task; it is good to place 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 a successful investor one should invest regularly in order to
get the benefit of the volatility by investing in the Systematic Investment Plan. (SIP)
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 for the entire duration. The SIPs (Systematic Investment Plans) offered by all
funds helps in being systematic. All that one needs to do is to give post-dated cheques to
the fund and thereafter one will not be harried later. The Automatic investment Plans
offered by some funds goes a step further, as the amount can be directly/electronically
transferred from the account of the investor.
Do your homework:
It is important for all investors to research the avenues available to them irrespective of
the investor category they belong to. This is important because an informed investor is in
a better decision to make right decisions. Having identified the risks associated with the
investment is important and so one should try to know all aspects associated with it.
Asking the intermediaries is one of the ways to take care of the problem.
83
Find the right funds

Finding funds that do not charge much fees is of importance, as the fee charged
ultimately goes from the pocket of the investor. This is even more important for debt
funds as the returns from these funds are not much. Funds that charge more will reduce
the yield to the investor. Finding right fund also involve choosing particular sector in
which he is going to invest. Investors of equity should keep in mind that all dividends are
currently tax-free in India and so their tax liabilities can be reduced if the dividend
payout option is used. Investors of debt will be charged a tax on dividend distribution
and so can easily avoid the payout options.
Keep track of your investments
Finding the right fund is important but even more important is to keep track of the way
they are performing in the market. If the market is beginning to enter a bearish phase,
then investors of equity too will benefit by switching to debt funds as the losses can be
minimized. One can always switch back to equity if the equity market starts to show
some buoyancy.
Know when to sell your mutual funds:
Knowing when to exit a fund too is of utmost importance. One should book profits
immediately when enough has been earned i.e. the initial expectation from the fund has
been met with. Other factors like non-performance, hike in fee charged and change in
any basic attribute of the fund etc. are some of the reasons for to exit. For more on it,
read "When to say goodbye to your mutual fund."
Review your investment carefully
A portfolio that is right for you at one point in your may not be quite so suitable a few
years later. An investment need to adapt changes in your circumstance, such as getting
marring, having children or starting a business. Investing in equity would be high-risk
strategy. Thats why you need to think about changing you portfolio over time.
RESEARCH STUDY
Research design:
For any researcher the research methodology is the most important criteria to decide
before the actual research process starts.
There are many methods for conducting the research some of them are as under:
Descriptive vs. Analytical
Applied vs. Fundamental
Quantitative vs. Qualitative
Conceptual vs. Empirical
Field setting or laboratory testing research
The design of a research is a plan or a model that helps researcher to conduct a formal
investigation and survey. It is an application of methods and procedures for acquiring the
information needs for getting a desire out come. It decides the sources of data and
methods for gathering data. A good design insures that the information obtained is
relevant to the research question and that it was collected by objectives. Since, research
84
design is simply the frame work or plan for a study. It is a blue print that of a house
devised by an architect. My approach to research is descriptive and quite specific.
Out of these all research methods the research method, which was most suitable to my
research, was descriptive research because it provides me all the opportunities to cover
the all the aspect that I require to conduct the research and get an appropriate out come.
Descriptive: Descriptive research includes surveys and fact finding enquires of
different kinds. The major purpose of descriptive research is description of the state of
affairs as it exits at present. The main characteristic of this method is that the researcher
has no control over the variables; he can only report what has happened or what is
happening.
Research objective
To get the customer from market for investing into the ICICI PRUDENTIAL
current products of mutual funds.
Data collection:
The task of data collection begins after a research problem has been defined and
research design/plan chalked out. While designing about the method of data collection to
be used for the study, the researcher should keep in mind two types of data.
There are 2 sources of data i.e.
1.primary data:
The data, which are collected for the first time, directly from the respondents to the base
of knowledge & belief of the research, are called primary data.
The normal procedure is to interview some people individually or in a group to
get a sense of how people feel about the topic.
So far as this research is concerned, primary data is the main source of
information. The data collected is through questionnaire & information provided by
the respondent.
2.Secondary data;
When data are collected & compiled in a published nature, it is called secondary data. So
far as this research is concerned, Internet & many magazines and the brochures have
been referred to.
Data collection
Personal visit & giving such little knowledge about mutual fund and ICICI
PRUDENTIAL plans.
Sample Universe
Sampling Technique
Sample size
Rajkot city
Random Sampling
100 respondents
85
Taking in to consideration that the research instrument selected by me was the personal
interview because it gives more flexibility in terms of collection of the data and one has a
chance to meet the responder personally and have an idea of getting an important
unknown data that can be collected through their behavior.
Data interpretation & Analysis:
There are lots of asset management company in the market. In this market booming era
each player in this industry taking the maximum benefit in the sense of return on the
investment. In to the market I find that most of the customer are investing their asset into
the NFO.
]
Finding & Conclusion
I find that into the market there were a lots of investor are investing their monery
into the ICICI PRUDENTIAL . I also find that a such of plan are favorites for the
investor in ICICI PRUDENTIAL.
I also find that such plan of ICICI like DYNAMIC, EMERGING STAR, TAX
PLAN, GROWTH FUND, POWER FUND are giving a highest return as compare to the
other plans of ICICI PRUDEANTIAL,
I also find that in to this last six month RELIANCE mutual fund is hot favorite
for the investors because of the last highest return of RELINCE fund and also for a get
the award from the TV channel.
ICICI PRUDENTIAL can be a best AMC among the other companies they have
to try for get a top level among all the AMC. In to the year 2006 ICICI PRUDENTIAL
get a one award from CNBC TV18. if ICICI PRUDENTIAL has a lots of staff for the
mutual fund purpose. Also ICICI PRUDENTIAL is a well known company into this
industry.
I got a 20 investors from this 100 customer who are willing to invest their money
into the ICICI PRUDENTIAL. But this investors is want to invest their money into the
NFO. Also I get a 12 customer out of this 100 customer who has invest their money into
ICICI PRUDENTIAL current plan. I got a Rs. 120000 from this customer.
86
ANNEXURE
CORPORATE OFFICE
Peninsula Tower, 5th Floor,
503, Peninsula Corporate Park,
Ganpatrao Kadam Marg,
Off. Senapati Bapat Marg,
Lower Parel,
Mumbai-400 013
BRANCH OFFICES ARE IN BELLOW DESCRIBED TABLE
87
Ahmedabad
Bhubaneswar
Coimbatore
Guwahati
Jaipur
Jodhpur
Kolkata
Banglore
Chandigarh
Dehradun
Hyderabad
Jalandhar
Kanpur
Lucknow
88
Baroda(Vadodara)
Chennai
Durgapur
Indore
Jamshedpur
Kochi
Ludhiana
Manglore
Mumbai(Boriwali)
Ajmer
Amrawati
Asansol
Bellary
Bhilwara
Bhopal
Davengere
Faridabad
Guntur
Hosur
Jalgaon
Kolhapur
Madurai
Meerut
Mysore
Pondichery
Salem
Thiruvananthapuram
Tirupur
Vashi
Nashik
Patna
Raipur
Thane
Vijaywada
Mumbai(Fort)
Nagpur
Allahabad
Amritsar
Aurangabad
Berhampur
Bokaro
Burdwan
Dhanbad
Gaziyabad
Gurgaon
Hubli
Jammu
Kota
Mathura
Moradabad
Navsari
Rajahmundry
Sambalpur
Trissur
Trichy
Vellore
New Delhi
Pune
Rachi
Udaipur
Visakhapatanam
Mumbai(Bandra)
Agra
Alwar
Anand
Balasore
Bhavnagar
Bhillai
Calicut
Erode
Gorakhpur
Gwalior
Jabalpur
Jamnagar
Kottayam
Manipal
Muzafferpur
Patiala
Rourkela
Siliguri
Tirunelveli
Valsad
Warangal
Panjim(Goa)
Rajkot
Surat
Varanasi
List of Tables
No.
1
2
3
4
Table Name
Various Funds & Investment Objective
Asset Under Management
Category wise Assets Under Management
Product Detail
89
Page No.
6
25
26
30
5
6
7
8
9
Scheme Detail
Acquisition & Utilization of ICICI Prudential Fund
Comparison of Mutual Fund with other investment
Risk Return Payoff Matrix
Scheme Wise Return
34
61
69
74
78
List Of Figures
No.
1
2
3
4
5
6
7
Figure Name
Services Of ICICI Bank
Growth in Asset Under Management
Mutual Fund Operation Flow Chart
AUM Holders
Products of ICICI Mutual Fund
Ministry of Finance Flow chart
Risk return trade off chart
Page No.
3
12
13
24
29
47
76
APPENDIX
GLOSSARY
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.
Sale Price
Is the price you pay when you invest in a scheme. Also called Offer Price. It may include
a sales load.
Repurchase Price
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
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
90
Is a charge collected by a scheme when it sells the units. Also called, Front-end load.
Schemes that do not charge a load are called No Load schemes.
Repurchase or Back-end Load
Is a charge collected by a scheme when it buys back the units from the unit holders?
Asset Allocation
When you divide your money among various types of investments, such as stocks,
bonds, and short-term investments (also known as "instruments"), you are allocating
your assets. The way in which your money is divided is called your asset allocation.
Asset Allocation Fund
A fund that spreads its portfolio among a wide variety of investments, including
domestic and foreign stocks and bonds, government securities, gold bullion and real
estate stocks. This gives small investors far more diversification than they could get
allocating money on their own. Some of these funds keep the proportions allocated
between different sectors relatively constant, while others alter the mix as market
conditions change.
Automatic Reinvestment
A service offered by most mutual funds whereby income, dividends and capital gain
distributions are automatically invested into the fund by buying additional shares and
thus building up holdings through the effects of compounding.
Annualized Return
This is the hypothetical rate of return that, if the fund achieved it over a year's time,
would produce the same cumulative total return if the fund performed consistently over
the entire period. A total return is expressed in a percentage and tells you how much
money you have earned or lost on an investment over time, assuming that all dividends
and capital gains are reinvested.
Balanced Fund
A mutual fund that maintains a balanced portfolio, generally 40% bonds and 60% equity.
Blue Chip
91
A share in a large, safe, prestigious company, of the highest class among stock market
investments. A blue-chip company would be called thus by being well-known, having a
large paid-up capital, a good track record of dividend payments and skilled management.
Bond/Income Fund
A mutual fund whose portfolio consists primarily of corporate and government
securities. These funds generally emphasize income rather than growth.
Bond Rating
System of evaluating the probability of whether a bond issuer will default. CRISIL,
ICRA, CARE and other rating agencies, analyze the financial stability of both corporate
and state government debt issuers. Ratings range from AAA (extremely unlikely to
default) to D (likely to default). Mutual funds generally restrict their bond purchases to
issues of certain quality ratings, which are specified in their prospectuses.
Capital Appreciation Fund
A mutual fund that seeks maximum capital appreciation through the use of investment
techniques involving greater than ordinary risk, such as borrowing money in order to
provide leverage and high portfolio turnover.
Capital Gain
Profit from a sale of an investment constitutes a capital gain. For example, if you bought
a share of stock for Rs. 5/- and later sold it for Rs. 7/-, you 8would have a capital gain of
Rs. 2/-.
Certificate of Deposit
Interest-bearing, short-term debt instrument mainly issued by Financial institutions.
Closed-ended Mutual Fund
A mutual fund that offers a limited number of shares. They are traded in the securities
markets. Price is determined by supply and demand. Unlike open-ended mutual funds,
closed-ended funds do not redeem their shares.
Collateral Security
This is extra security provided by a borrower to back up his/her intention to repay a loan.
92
Commercial Paper
Short-term, unsecured promissory notes with maturities shorter than 3 months. They are
issued by corporations to fund short-term credit needs.
Commission
The broker or agent's fee for buying or selling securities for a client. The fee is usually
based on a percentage of the transaction's market value.
Derivative
An investment contract based on an underlying investment called an "instrument." The
most common type of derivative is an option contract, which involves the right to buy or
sell the underlying instrument at an agreed price. Futures contracts are also derivatives.
Dividend
When companies pay part of their profits to shareholders, those profits are called
dividends. A mutual fund's dividend is money paid to shareholders from investment
income the fund has earned. The amount of each share's dividend depends on how well
the company does.
Expense Ratio
The ratio of total expenses to net assets of the fund. Expenses include management fees,
the cost of shareholder mailings and other administrative expenses. The ratio is listed in a
fund's prospectus. Expense ratios may be a function of a fund's size rather than of its
success in controlling expenses.
Growth Fund
A mutual fund whose primary investment objective is long-term growth of capital. It
invests principally in common stocks with significant growth potential.
Income Fund
A mutual fund that primarily seeks current income rather than growth of capital. It will
tend to invest in stocks and bonds that normally pay high dividends and interest.
Index Fund
A mutual fund that seeks to mirror general stock-market performance by
93
Institutional Investor
An institutional investor is a professional money manager whose job it is to put money
into shares and other assets on behalf of private investors who entrust them with money
via their pension and life insurance funds.
International Fund
A fund that invests in securities traded in markets outside India.
Liquidity
If you can generally buy or sell an asset quickly, or convert it to cash quickly, then that
asset is considered "liquid."
Load
A sales charge or commission assessed by certain mutual funds ("load funds") to cover
their selling costs.
Load Fund
A mutual fund that levies a sales charge, which is included in the offering price of its
shares, and is sold by a broker or salesman. A front-end load is the fee charged when
buying into a fund; a back-end load is the fee charged when getting out of a fund.
Low-Load Fund
A mutual funds that charges small commission, usually 1.5% or less, for the purchase of
its shares.
Management Fee
The amount that an Asset Management Company (AMC) charges for management of the
fund's portfolio. In general, this fee ranges from 0.5% to 1.25% of the fund's asset value.
Market
A public place where the buying and selling of all types of bonds, stocks and other
securities takes place. A stock exchange is a market.
94
Money Market Fund

A mutual fund that aims to pay money market interest rates. This is accomplished by
investing in safe, highly liquid securities, including certificates of deposit, commercial
paper, and Government securities. Money funds make these high interest securities
available to the average investor seeking immediate income and high investment safety.
Net Asset Value
Also known as NAV, this is the unit price (or rupee value) of one unit of a mutual fund.
NAV is calculated at the end of every business day. It is calculated by adding up the
value of all the securities and cash in the mutual fund's portfolio (its assets), subtracting
the fund's liabilities, and dividing that number by the number of units that the fund has
issued. It does not include a sales charge. The NAV increases (or decreases) when the
value of the mutual fund's holdings increase (or decrease).
No-Load Fund
A commission-free mutual fund that sells its units at NAV, either directly to the public or
through an affiliated distributor, without the addition of a sales charge.
Offer Document
See Prospectus
Prospectus
An official document that each investment company must publish, describing the mutual
fund and offering its shares for sale. It contains information that has been mandatory
required by SEBI.
Rate of Return
The total proceeds derived from the investment per rupee initially invested. Proceeds
must be defined broadly to include both cash distributions and capital gains. The rate of
return is expressed as a percentage.
Record Date
The date the fund determines who its unit holders are; "unit holders of record" who will
receive the fund's income dividend and/or net capital gains distribution.
Redemption Price
95
The price at which a mutual fund's units are redeemed (bought back) by the fund. The
redemption price is usually equal to the current NAV per unit.
Reinvestment Privilege
A service that most mutual funds offer whereby a shareholders income dividends and
capital gains distributions are automatically reinvested in additional shares. See
Automatic Reinvestment.
Sector Fund
A fund that operates several specialized industries sectors portfolios under one umbrella.
These sectors could be FMCG or Technology.
Securities
This is another word for stocks, bonds, and short-term investments.
Specialty Fund (See Sector Fund)
A mutual fund specializing in the securities of a particular industry or group of industries
or special types of securities.
Systematic Investment Plan

Many mutual funds offer investment programs whereby unit holders can invest. The Unit
holders of the scheme can benefit by investing specific Rupee amounts periodically, for a
continuous period. The SIP allows the investors to invest a fixed amount of Rupees every
month or quarter for purchasing additional units of the scheme at NAV based prices.
Systematic Withdrawal Plans
Many mutual funds offer withdrawal programs whereby unit holders receive payments
from their investments. These payments are usually drawn from the fund's dividend
income and capital gain distributions, if any, and from principal only when necessary.
Total Return
The performance of an investment, including yield (dividends, interest, capital gains) as
well as changes in per unit price, calculated over a designated period of time. Assuming
reinvestment of capital gains and income distributions, multiply the number of units
96
owned by the net asset value per unit. Subtract the original investment from the result.
Then divide that figure by the original investment and multiply by 100. (Assuming your
units are now worth Rs. 8,000 and the investment was Rs. 5,000/-, divide Rs. 3,000/- by
Rs. 5,000/- getting 0.6. Multiplied by 100-percentage increase, or total return, was 60%.)
Also see Yield.
Trustee
One designated to hold property for another, pending the performance of an obligation.
In a deed of trust state, the trustee is often the title company that handled the property
sale closing.
Yield
Income or return received from an investment, usually expressed as a percentage of
market prices, over a designated period. For a mutual fund, yield is interest or dividend
before any gain or loss in the price per share. See Total Return.
Zero Coupon Bond
Bond sold at a fraction of its face value. It appreciates gradually, but no periodic interest
payments are made. Earnings accumulate until maturity, when the bond is redeemable at
full face value.
BIBLIOGRAPHY
BOOKS & Magazine:ICICI Prudential fact sheet
AMFI hand book
Mutual fund research
Investor
97
http://www.amfiindia.com/
http://www.sebi.gov.in/
http://investor.sebi.gov.in/faq/mutualfundfaq.html
http://finance.indiamart.com/india_business_information/
http://www.indiainfoline.com/
http://www.iciciprudentialamc.com/
http://www.reliancemutual.com/
http://www.moneycontrol.com/
98

Icici Prudential

Hochgeladen von

Dokumentinformationen

Copyright

Verfügbare Formate

Dieses Dokument teilen

Dokument teilen oder einbetten

Freigabeoptionen

Stufen Sie dieses Dokument als nützlich ein?

Sind diese Inhalte unangemessen?

Copyright:

Verfügbare Formate

Icici Prudential

Hochgeladen von

Copyright:

Verfügbare Formate

CONTENTS

OBJECTIVES OF THE STUDY

Financial Institutions in India are undergoing a process of transformation for

HISTORY OF ICICI PRUDENTIAL

Assets under Management

Rs. 160 crore

Rs. 37,869.58 crores

Number of Funds Managed

Understanding the needs of customers and offering them superior products

Leveraging technology to service customers quickly, efficiently and

Developing and implementing superior risk management and investment

Providing an enabling environment to foster growth and learning for

And above all, building transparency in all dealings.

ICICI PRUDENTIAL Identity

Close to our clients and investment markets

Energetic and focused

Board of Directors of the AMC

The Directors of the Trustee Company

Mr. Nilesh Shah

Chief Investment Officer

Mr. Vasant Sanzgiri

Sr. Vice President & Head Human Recourses

Mr. Kalyan Prasath

Vice President Information Technology

Mr. Ranganath Athreya

Sr.VP Legal, Compliance and C.S.

Mr. Ashok Suvarna

Vice President Operation

Chief Financial Officer

Vice President Marketing

General Information on Mutual Fund

First Phase 1964-87

Second Phase 1987-1993 (Entry of Public Sector Funds)

Third Phase 1993-2003 (Entry of Private Sector Funds)

Fourth Phase since February 2003

GROWTH IN ASSETS UNDER MANAGEMENT

WHAT IS A MUTUAL FUND?

MUTUAL FUND CONCEPT

MUTUAL FUND OPERATION FLOW CHART

ORGANISATION OF A MUTUAL FUND

TYPES OF MUTUAL FUND SCHEMES

TYPES OF MUTUAL FUNDS

Government securities\Gilt Fund

Money Market Funds

3. OTHER EQUITY RELATED SCHEMES

Sector Specific Schemes

Money Market Yes

ADVANTAGES OF MUTUAL FUNDS

Flexible, Affordable and a Low Cost affair

Number of available options

Investment offer to Client

u get your money back when you

How easy is it to invest,

How much is really left for you post tax?

DRAWBACKS OF MUTUAL FUNDS

No Guarantees: No investment is risk free. If the entire stock market declines

Sometimes referred to as "loss of purchasing power." Whenever the rate of inflation

Interest Rate Risk:

Comparison with Bank

Moderate and still

Interest calculation Minimum balance between 10th. & 30th. Of

Maximum Rs.1 lakh on deposits

Dominant Players in the Industry as share of AUM

Dominate Players with %No. Of schemes