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PROJECT REPORT ON
AN ANALYSIS OF MUTUAL FUNDS AWARENESS CAMPAIGN INITIATED BY
ICICI SECURITIES LTD
Submitted By:
Nitin A.P Singh
Summer intern at ICICI SECURITIES LTD,
From: Thakur Institute of Management Studies and Research.
DECLARATION
I hereby declare that the project report entitled, AN ANALYSIS OF MUTUAL FUNDS
AWARENESS CAMPAIGN INITIATED BY ICICI SECURITIES LTD submitted to Thakur
Institute of Management Studies & Research (TIMSR), Mumbai, is a record of the original
work done by me under the guidance of Prof. Shradha Lunia, and this project work is
submitted in partial fulfillment of the requirements for the degree of Masters in Management
Studies. The results embodied in this study have not been submitted to any other Institute or
University for the award of any other degree or diploma.
Place: Mumbai
MMS-Finance
Roll No: 94
ACKNOWLEDGEMENT
Before we get into thick of things, I would like to add a few words of appreciation for the
people who have been a part of this project right from its inception. The writing of this
project has been one of the significant academic challenges I have faced and without the
support, patience, and guidance of the people involved, this task would not have been
completed. It is to them I owe my deepest gratitude.
It gives me immense pleasure in presenting this project report on An Analysis of Mutual
Funds awareness campaign initiated by ICICI Securities. It has been my privilege to
have a team of project guide who have assisted me from the commencement of this project.
The success of this project is a result of sheer hard work, and determination put in by me with
the help of my project guide. I hereby take this opportunity to add a special note of thanks for
Prof. Shradha Luniya, who undertook to act as my mentor despite her many other
professional commitments. Her wisdom, knowledge, and commitment to the highest
standards inspired and motivated me. Without her insight, support, and energy, this project
wouldn't have kick-started and neither would have reached fruitfulness.
I convey my heart full thanks to the staff members of ICICI Securities, for their help and
corporation.
I am very thankful to my guide Mr. Bir Bharat Mishra for his full support in completing
this project work.
Last but not least, I would like to thank my family and Friends for their full cooperation &
continuous support during the course of this assignment.
The project is dedicated to all those people, who helped me while doing this project.
TABLE OF CONTENTS
Page No.
CHAPTER 2
INTRODUCTION
2.1
2.2
2.3
2.4
CHAPTER 3
LITERATURE REVIEW...25
CHAPTER 4
STUDY/PROJECT DETAILS
4.1
4.2
4.3
Study Methodology.................................................. 27
4.4
Study Limitations.......................................................28
CHAPTER 5
CHAPTER 6
Findings..... .36
6.2
Observation.37
6.3
Conclusions.................................................................38
6.4
Suggestion..................................................... .39
6.5
6.6
6.7
Bibliography... 42
6.8
Annexure.........43
LIST OF TABLES:
Page No.
Table 1: Number of UTI Schemes
09
32
33
LIST OF FIGURES
Page No.
Figure 1:
03
Figure 2:
32
Figure 3:
33
Figure 4:
34
CHAPTER 2: INTRODUCTION
2.1 INTRODUCTION TO THE TOPIC
WHAT IS MEAN BY MUTUAL FUND?
Mutual funds are pools of money that are managed by an investment company. They offer
investors a variety of goals, depending on the fund and its investment charter. Some funds,
for example, seek to generate income on a regular basis. Others seek to preserve an investor's
money. Still others seek to invest in companies that are growing at a rapid pace. Funds can
impose a sales charge, or load, on investors when they buy or sell shares. Many funds these
days are no load and impose no sales charge. Mutual funds are investment companies
regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.
CONCEPT OF MUTUAL FUNDS
Mutual funds are institutions that collect money from several sources - individuals or
institutions by issuing 'units', invest them on their behalf with predetermined investment
objectives and manage the same all for a fee. They invest the money across a range of
financial instruments falling into two broad categories equity and debt. Individual people
and institutions no doubt, can and do invest in equity and debt instruments by themselves but
this requires time and skill on both of which there are constraints. Mutual funds emerged as
professional financial intermediaries bridging the time and skill constraint. They have a team
of skilled people who identify the right stocks and debt instruments and construct a portfolio
that promises to deliver the best possible 'constrained' returns at the minimum possible cost.
In effect, it involves outsourcing the management of money. More explicitly, the benefits of
investing in equities and debt instruments are supposedly much better if done through mutual
funds. This is because of the following reasons: Firstly, fund managers are more skilled. They
are trained to identify the best investment options and to assess the portfolio on a continual
basis; secondly, they are able to invest in a diversified portfolio consisting of 15-20 different
stocks or bonds or a combination of them. For an individual such diversification reduces the
risk but can demand a lot of effort and cost. Each purchase or sale invites a cost in terms of
brokerage or transactional charges such as demat account fees in India. The need to possibly
sell 'poor' stocks/bonds and buy 'good' stocks/bonds demands constant tracking of news and
performance of each company they have invested in. Mutual funds are able to maintain and
track a diversified portfolio on a constant basis with lesser costs. This is because of the
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pecuniary economies that they enjoy when it comes to trading and other transaction costs;
thirdly, funds also provide good liquidity. An investor can sell her/his mutual fund
investments and 17 receive payment on the same day with minimal transaction costs as
compared to dealing with individual securities, this totals to superior portfolio returns with
minimal cost and better liquidity.
This can be represented with the following flow chart:
higher returns. Hedge fund involves a very high risk since it is mostly traded in the
derivatives market which is considered very volatile.
HISTORY ABOUT MUTUAL FUND
The mutual fund was born from a financial crisis that staggered Europe in the early 1770s.
The British East India Company had borrowed heavily during the preceding boom years to
support its ambitious colonial interests, particularly in North America where unrest would
culminate in revolution in a few short years.
As expenses increased and revenue from colonial adventures fell, the East India Company
sought a bailout in 1772 from the already-stressed British treasury. It was the original too
big to fail corporation and the repercussions were felt across the continent and indeed
around the world.
At the same time, the Dutch were facing their own challenges, expanding and exploring like
the British and taking copy-cat risks in a pattern that has drawn parallels to the banking
crisis of 2008.
THE FIRST MUTUAL FUND
Against this backdrop, a Dutch merchant, Adriaan van Ketwich, had the foresight to pool
money from a number of subscribers to form an investment trust the worlds first mutual
fund in 1774. The financial risk to the mainly small investors was spread by diversifying
across a number of European countries and the American colonies, where investments were
backed by income from plantations, an early version of todays mortgage-backed securities.
Subscription to the closed-end fund, which Van Ketwich called Eendragt Maakt Magt, was
available to the public until all 2,000 units were purchased. After that, participation in the
fund was available only by buying shares from existing shareholders in the open market. The
funds prospectus required an annual accounting, which investors could view if they
requested. Two subsequent funds set up in the Netherlands increased the emphasis on
diversification to reduce risk, escalating their appeal to even smaller investors with minimal
capital.
Van Ketwichs fund survived until 1824 but the vehicle he created is still a hallmark of
personal investing more than two centuries later with an estimated $27.86 trillion US in
global assets in July 2013. In Canada alone, mutual funds represent $920 billion.
The early mutual funds spread were of the closed-end variety, issuing a fixed number of
shares. They spread from the Netherlands to England and France before heading to the U.S.
in the 1890s.
The first modern-day mutual fund, Massachusetts Investors Trust, was created on March 21,
1924. It was the first mutual fund with an open-end capitalization, allowing for the
continuous issue and redemption of shares by the investment company. After just one year,
the fund grew to $392,000 in assets from $50,000. The fund went public in 1928 and
eventually became known as MFS Investment Management.
INDIAN SCENARIO OF MUTUAL FUND
The origin of mutual fund industry in India is with the introduction of the concept of by UTI
in the year 1963. Through the growth was slow, but it accelerated from the year 1987 when
non-UTI players entered in industry. The mutual fund industry goes through four phases:
No. of schemes
94
7
366
Equity Schemes
97
Debt Schemes
225
20
12
Money Market
Gilt Fund
11
TRUSTEE:
UTI Trustee Co. Limited.
Future Prospect of Mutual Funds in India
The Future of Mutual Funds in India suggests that the industry has got huge scopes of
development in the times to come. The Future of Mutual Funds in India is quite bright,
Mutual Funds are one the most popular forms of investments as these funds are
diversification, professional management, and liquidity. In the year 2004, the mutual fund
industry in India was worth Rs 1,50,537 crores. The mutual fund industry expected to grow at
a rate of 13.4% over the next 10 years.
Banking
Insurance and Mutual Funds
Online Trading
FINANCIAL INSTITUTION
In financial economics, a financial institution is an institution that provides financial services
for its clients or members. Probably the most important financial service provided by
financial institutions is acting as financial intermediaries. Most financial institutions are
regulated by the government.
Broadly speaking, there are three major types of financial institutions:
BROKING FIRM
The stock broking industry is a service-oriented industry where brokers act as agents for
investors when a security is bought or sold and are compensated with a commission.
Investors would not hesitate to switch to alternative brokerage houses if they do not obtain
satisfaction. Providing quality service and hence customer satisfaction should thus be
recognized as a key strategy and a crucial element of long-run success and profitability for
stock broking businesses.
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The Securities Brokerage Industry is cyclical and comprised of two distinct types of
businesses. Brokerages, also known as financial services companies, strive to meet the
investing needs of their clients, and exchanges facilitate securities trading.
Net profits correlate to the performance of the broader equity market. In this market with less
differentiated products and many players, there exists an oligopoly, characterized by tough
competition, entry and exit barriers and many more.
Little has been done towards understanding the expectations investors hold from their
stockbrokers. Since expectations serve as benchmark to gauge the service level of brokers,
the delivery of services that exceed customer expectations is one strategy that can give firms
a competitive advantage. Therefore, it would seem beneficial for stockbrokerage firms, in a
dynamic economic environment like India, to provide service at a good scale of quality. In
addition, stockbrokers have much to gain in understanding investors expectations of them, as
this would help the stockbrokers to serve their customers better and foster long-lasting
relationship with their customers.
TYPES OF BROKERAGE FIRMS
As an investor, you should shop for a brokerage firm just as you would for any other
professional service. Brokerage firms come in all sizes, from "one-man" firms to
international corporations. Similarly, the services offered by each firm and the commissions
they charge vary significantly.
Brokerage firms may be classified into three basic types: full-service, discount and limited
products.
1). FULL-SERVICE BROKERAGE FIRM:
A full service brokerage firm can provide you with a complete package of investment
services, including recommending securities, researching a particular issue, or providing
individualized service through a salesperson. The firm receives its payment in the form of a
commission that is calculated according to the type of security and the amount you are
investing. A full-service firm is generally best for those who are new to the market or who do
not have the time or the desire to do their own investment research.
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12
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Systems and Insurance are available. ICICIdirect.com offers a convenient and easy to use
platform to invest in equity and various other financial products using its unique 3-in-1
account which integrates customers saving, trading and de-mat accounts.
Apart from convenience, ICICIdirect.com also offers access to comprehensive research
information, stock picks and mutual fund recommendations among other offerings. Tailored
services and trading strategies are available to different types of customers; long term
investors, day traders, high-volume traders and derivatives traders to name some.
ICICIdirect.com uses the most advanced commercially available 128-bit encryption
technology enabled Secure Socket Layer (SSL), to ensure that the information transmitted
between the client and ICICIdirect.com across the internet is safe and cannot be accessed by
any third party.
ICICIdirect.com is the first broker in India to introduce Digitally Signed Contract Note to
its customers. As a result, the process of generating contract notes has been automated and
the same would be instantly available to its customers in a safe and secure manner through
the website.
ICICI Securities has set-up neighbourhood financial stores which offer a variety of financial
products and services under one roof. It is a one-stop shop that facilitates existing and
potential customers to speak to our team and understand their financial plans and goals. ICICI
Securities has 250 stores across 66 cities in India.
Another unique concept called the ICICIDirect.com Money Kitchen, was launched in late
2009. An extension of the superstore model, the money kitchen is an innovative financial
store where visitors can create their profiles to not only analyze their investment strategy by
using various financial tools but also monitor it from time-to-time.
To enable our customers to maximize their returns and plan for their future, ICICIDirect.com
has also started financial planning services at these stores. Customized financial plans can be
created for our customers by dedicated Relationship Managers who will understand the
customer's requirements and future goals.
Based on this information, the Relationship Manager works on creating a comprehensive and
easy to read financial plan. This enables ICICIDirect.com to move from just a transactional
based relationship to a meaningful and value-added long-term relationship with our
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customers. ICICIDirect.com services and offerings evolve according to the customer's ever
changing requirements and goals.
Customers can walk-in to the financial superstores for products like ICICIDirect.com 3-in-1
online trading account, equities, mutual funds, IPO, Life and General insurance, Fixed
Deposits and many other financial products. The stores also conduct periodic training
sessions on markets and demo sessions of the trading website.
Board of Directors:
ORGANISATION STRUCTURE
Branch
Manager(Mrs
Parul
Nandode)
Key
Relationship
Manager(Mis
s Surbhi)
Sr.
Relationship
Manager(Mr.
Hemant)
Key
Relationship
Manager(Mr
Nitesh)
Sr.
Relationship
Manager(Mr
Prabhakant)
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Sr.
Relationship
Manager(Mr
Mittal)
3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility. There is absolutely no manual interfere require. This
all from one website. General Insurance is also available from ICICI Lombard.
Trading is available in both BSE and NSE.
A mutual fund is a kind of investment that uses money from many investors to invest
in stocks, bonds or other types of investment. A fund manager or portfolio manager decides
how to invest the money, and for this he is paid a fee, which comes from the money in the
fund.
There are thousands of different kinds of mutual funds, specializing in investing in different
countries, different types of businesses, and different investment styles. There are even some
funds that only invest in other funds.
TYPES OF MUTUAL FUNDS
BY NATURE
BY
INVESTMENT
OBJECTIVE
OTHER
SCHEMES
OpenEnded
Schemes
Equity
Funds
Growth
Schemes
Tax-Saving
Schemes
CloseEnded
Schemes
Debt
Funds
Income
Schemes
Index
Schemes
Interval
Schemes
Balanced
Funds
Balanced
Schemes
Sector
Specific
Schemes
Money Market
Schemes
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GILT FUND
19
A) BY STRUCTURE
Open-ended fund/scheme:
An open-ended fund is one that is available for subscription and repurchase on continuous
basis. These schemes do not have a fixed maturity period. Investors can conveniently buy
and sell units at Net Asset Value (NAV) related prices which are declared on a daily basis.
The key feature of open-end scheme is liquidity.
Close-ended fund/scheme:
A close-ended scheme has a stipulated maturity period e.g. 5-7 years. The fund is open for
subscription only during a specified period at the time of launch of the scheme. Investors can
invest in the scheme at the time of initial public issue and thereafter they can buy or sell the
units of the scheme on the stock exchanges where the units are listed. In order to provide an
exit route to the investors, some close ended funds give an option of selling back the units to
mutual funds through periodic repurchase at NAV related prices. SEBI regulation stipulated
that at least one of the two exit routes is provided to the investors i.e. either repurchase
facility or through listing on stock exchanges. These mutual funds schemes disclose NAV
generally on weekly basis.
Interval :
Operating as a combination of open and closed ended schemes, it allows investors to trade
units at pre-defined intervals.
B) BY NATURE
Equity Fund:
These funds invest the maximum part of their corpus into equities holdings. The structure of
the fund may vary different for different schemes and the fund managers outlook on different
stocks. The Equity Funds are sub-classified depending upon their investment objective, as
follows:
1.
2.
3.
4.
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Equity investments are meant for a longer time horizon, thus Equity funds rank high on the
risk-return matrix.
DEBT FUNDS:
The objective of these Funds is to invest in debt papers, Government authorities, private
companies, banks and financial institutions are some of the major issuers of debt papers. By
investing in debt instruments, these funds ensure low risk and provide stable income to the
investors. Debt funds are further classified as:
GILT FUNDS:
Invest their corpus in securities issued by Government, popularly known as
Government of India debt papers. These Funds carry zero Default risk but are
associated with Interest Rate risk. These schemes are safer as they invest in papers
backed by Government.
INCOME FUNDS:
Invest a major portion into various debt instruments such as bonds, corporate
they take
minimum exposure in equities. It gets benefit of both equity and debt market.
These scheme ranks slightly high on the
and
are
and
of the scheme. These schemes aim to provide investors with the best of both the worlds.
Equity part provides growth and the debt part provides stability in returns.
Further the mutual funds can be broadly classified on the basis of investment parameter viz;
each category of funds is backed by an investment philosophy, which is pre-defined in the
objectives of the fund. The investor can align his own investment needs with the funds
objective and invest accordingly.
ACCORDING TO INVESTMENT OBJECTIVES:
A scheme can also be classified as growth scheme, income scheme, or balanced scheme
considering its investment objective. Such schemes may be open-ended or close-ended
schemes as described earlier. Such schemes may be classified mainly as follows:
Growth or equity oriented Scheme:
The aim of growth funds is to provide capital appreciation over the medium to long term.
Such schemes normally invest a major part of their corpus in equities. Such funds have
comparatively high risk. These schemes provide different options to the investors like
dividend option, capital appreciation and the investors may choose an option depending on
their performance. The investors must indicate the option in the application form. The mutual
funds also allow the investors to change the options at a later date. Growth schemes are good
for investors having a long term outlook seeking appreciation over a period of time.
Income / debt oriented schemes:
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, Govt.
securities and money market instruments. Such funds are less risky compared to equity
schemes. These funds are not affected because of fluctuations in equity markets. However,
opportunities of capital appreciation are also limited in such funds. The NAVs of such funds
are affected because of change in interest rates in the country. If the interest fall, NAVs of
such funds are likely to increase in the short run and vice-versa. However, long term investors
may not bother about these fluctuations.
Balanced Funds:
The aim of balanced funds is to provide both growth and regular income as such schemes
invest both in equity and fixed income securities in the proportion indicated in their offer
22
document. These are appropriate for the investors looking for moderate growth. They
generally invest 40% to 60% in equity and debt instruments. These funds are also affected
because of fluctuation in share prices in the stock markets. However, NAVs of such funds are
likely to be less volatile compare to pure equity funds.
Money market or liquid funds:
These funds are income funds and their aim is to provide easy liquidity, preservation of
capital and moderate income. These schemes invest exclusively in safer short-term
instruments such as treasury bills, certificates of deposits, commercial paper and inter-bank
call money, government securities, etc. Returns on these schemes fluctuate much less
compared to other funds. These funds are appropriate for corporate and individual investors
as a means to park their surplus funds for short periods.
OTHER SCHEMES
ELSS:
Equity linked savings scheme (ELSS) are equity funds floated by mutual funds. This scheme
is suited for young people as they have the ability to take on higher risk. The ELSS funds
should invest more than 80 per cent of their money in equity and related instruments. It is
ideal to invest in them when the markets are down. These funds are now open all the year
round. The other way of investing in these funds could be a systematic investment, which
essentially means investing a small sum regularly (monthly or quarterly). It is a market-linked
security and therefore there will be risks accordingly.
Index funds:
Index funds replicate the portfolio of a particular index such as the BSE sensitive index, S&P
NSE-50 index (Nifty) etc. These schemes invest in the securities in the same weightage
comprising of an index. The NAVs of such schemes would rise or fall in accordance with the
rise or fall in the index, though not exactly by same percentage due to some factors known as
tracking error in technical terms. Necessary disclosures in this regards are made in the offer
document of the mutual fund scheme. These are also exchange traded index funds launched
by the mutual funds which are traded on the stock exchange.
SECTORAL SCHEME:
23
Sectoral funds are invested in a specific sector like infrastructure, IT, pharmaceuticals, etc. or
segments of the capital market like large caps, mid caps, etc. This scheme provides a
relatively high risk-high return opportunity within the equity space.
24
Mutual funds industry is a growing at a very fast rate India. Various studies and research has
been on this industry by experts. Here are the lists of few books that have been referred to for
the purpose of the study.
Mr. M. Jaidev in his book has Investment policy and performance of Mutual Fund has
studied the Indian Public Sector Mutual Funds. In this book he has covered risk, rate of
return. Investment policy and pricing of mutual funds In this book he has done an empirical
study covering all aspects of mutual fund investment along with the regulatory framework.
Nalini Prava Tripathy in her book Mutual Funds in India Emerging Issues provides a
detailed evaluation of investment management which is not only helpful for influencing
marketing operations but also for securities selection, investment research and timing and
resource allocation.
Dr H. Sadak in his book Mutual Funds in India has highlighted the importance of financial
institutions in India, The basic focus on the growth and development of mutual funds in
India. The entire gamut of the theoretical aspects of the fund management has been critically
examined in the context of the performance of mutual funds and it provides an insight into
fund management and the areas of weakness.
Study by Laukkanen (2006) explains that varied attributes present in a product or service
facilitate customers achievement of desired end state and the indicative facts of study show
that electronic services create value for customers in service consumption.
Source: - vsrdjournal.com
25
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SAMPLING PLAN:
Population:
Kandivali East Customers of ICICI Securities Ltd.
Sampling size: A sample of forty was chosen for the purpose of the study. Sample considers of
small investor, large investors and traders of ICICI securities Ltd.
27
28
29
last 30 days.
STEP 3: PURCHASE
After clicking on any option above it will go to purchase page where we can choose new
folio or existing folio. Once everything has been filled, click on proceed for confirmation. It
will take us to add to the modifying allocation page.
And on that we can add or reduce the amount we want and once we Click on the submit
button, it will take us to the final confirmation page. And once we click the button final
confirmation our mutual fund order will be placed.
STEP 4: PORTFOLIO MANAGEMENT
To do portfolio management go to the mutual fund page and select portfolio and then it will
go to the portfolio tracker page, where we can see the details, NAV etc.
NAV - NET ASSET VALUE
Net asset value is the market value of the asset 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.
Net Asset Value (NAV) denotes the performance of a particular scheme of a mutual fund.
Mutual funds invest the money collected from the investors in securities markets. In simple
words, Net Asset Value is the market value of the securities held by the scheme. Since
market value of the securities changes every day, NAV of a scheme also varies on day-to-day
basis. The NAV per unit is the market value of securities of a scheme divided by the total
number of units of the scheme on any particular date. For example, if the market value of
securities of a mutual fund scheme is Rs200 lacks and the mutual fund has issued 10 lacks
units of Rs 10 each to the investors, then the NAV per unit of the fund is Rs 20.
STEP 5: REDEMPTION
In addition to giving hassle-free paperless redemption, ICICldirect.com offers faster liquidity.
31
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Q1) How much will you rate the demo from 1 to 5. (Where 5 is the highest and 1 is the
lowest)
RATINGS
NO.
OF PERCENTAGE
5
4
3
2
1
RESPONDENTS
8
32
0
0
0
NO. OF RESPONDENTS
350
300
250
200
150
100
50
0
RATING OF DEMO
33
20%
80%
0
0
0
Rating
1; 18%
2; 83%
From the survey it was found that out of 40 respondents 80% of customers find it
satisfied with the services of ICICIDirect .com, and 20% are highly satisfied .Then we
can say that ICICIDirect.Com offers quality service that touches customers satisfaction level.
OBJECTIVE 2: To analyze interest of a customer through Mutual Fund Simplified video to
create business for ICICI Securities.
After showing the mutual fund demo to its customers we ask them their interest in investing
in mutual fund.
Are you planning to invest in mutual fund in ICICI securities?
YES/NO
NO.
OF PERCENTAGE
Yes
No
RESPONDENTS
6
34
15%
85%
34
No. of respondents
28%
YES
NO
72%
15% of the customers tendency is they believe that Mutual Fund is the safest way to invest in
the market. And 85% of the customers are not looking forward for investing in mutual fund
due to various reasons. Some of the prime reasons are:
OBJECTIVE 3: To examine the extent to which the information made available on the web
Portal meets the information needs of the retail investor
From the survey some of the important suggestions has been collected which is given by
Customers:
Most of the investors prefer investing in equity funds and bank FDs rather than mutual fund
due to lack of knowledge about mutual funds.
ICICI Direct platform is user friendly as it gives overall view on a single click.
Viewers found that duration of long term capital gains and short term capital gains is not been
specified which is important for an investor to know about whether he is able to invest for a
short term or long term and when it comes to capital gains tax implications, it can be
categorized into long term capital gains (LTCG) tax and short term capital gains (STCG) tax.
LTCG tax is applied when units are held for more than 12 months or one year. While STCG
35
tax has to be paid when units are held for less than 12 months. This segregation of short term
capital gain and long term capital gain with tax should be specified so that one can compare
expected returns and tax from them and accordingly invest their savings.
ICICIDirect brokerage is high and not negotiable .Some Asset Management Companies
(AMCs) have sales charges, or loads, on their funds (entry load and/or exit load) to
compensate for distribution costs. Entry load is charged at the time an investor purchases the
units of a scheme. The entry load percentage is added to the prevailing NAV at the time of
allotment of units. Exit load is charged at the time of redeeming or transferring an investment
between schemes. The exit load percentage is deducted from the NAV at the time of
redemption or transfer between schemes. This amount goes to the Asset Management
Company and not into the pool of funds of the scheme. So, ICICI Direct platform could have
been more exhaustive by providing a clear picture to an investor about entry or exit loads and sales
charges, Lock in period to know the redeem charges applied while redeeming etc.
36
Reason for not investing in the mutual fund is that only 35% of the customers are
aware about that mutual funds are also available on the online portal of
37
6.2 OBSERVATIONS
Most of the people dont have proper knowledge about the mutual funds and that is
clear cut idea about the difference between the savings and investment.
Some of the respondents have wrong perception about the mutual funds. They feel
mutual funds are very risky investment alternative.
38
6.3 CONCLUSION
After a thorough study and analysis of the questionnaires, Feedback given by clients some
important and useful findings can be stated. These findings have helped in a great way to
come to the conclusion part of the project work. The project was quite successful at the end
of the internship period of the researcher. The researcher had a great experience working with
ICICI Securities Ltd. Meetings with customers were useful to understand their queries about
mutual funds and investment in the same with the use of ICICIDirect.com.
There was a lot of confusion about mutual funds in the minds of customers. Because of the
awareness program undertaken by ICICI Securities Ltd many of the respondents now have
clear idea about mutual funds and are willing to invest in the same.
Though many of the customers were aware about online investment in MFs through
ICICIDirect.com, only few were investing. But after showing the demo of the same, many of
them impressed with it and gave positive response about the awareness program.
Also, the researcher got ample of knowledge about the mutual funds and various schemes
available on ICICIDirect.com. The researcher also learnt about comparison of various
schemes based on different parameters.
As many of the customers are now aware about the mutual funds and online investment
through ICICIDirect.com, the project has been successfully completed by the researcher.
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6.4 SUGGESTION
After seeing the whole Data analysis and findings, the Recommendations for the company are
shown as below.
The company should give the knowledge regarding Mutual Fund through various
sources like more advertisement, TV programmes etc. about what it is? How it works?
What is its benefit for us with its advertisement or in programmes? Because many
people have heard about it but dont know what it is?
The company should also attract the low Income people by showing them the benefits
of the liquidity funds for the short Term to attract them.
The company should also attract the customer through different schemes who having
knowledge about the Mutual Funds but not investing in Mutual Funds.
The company should give information regarding Tax benefit to Invest into Mutual
Fund.
The company should organize Free seminars to give information about Mutual Fund
and should distribute brochures having detail of schemes of Mutual Fund
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Also i learnt the importance of Punctuality and Discipline in Work place. During my 2
months of Internship, I got to know how does broking firms works. Thus helping me to gain
more practical knowledge in Mutual fund sector.
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6.8 ANNEXURE
FOLLOWING IS THE QUESTIONNAIRE, WHICH I TOOK RESPONSES FROM
CLIENTS AND HELPED FOR DOING THE PROJECT.
1.HOW DO YOU RATE THIS VIDEO?
Worst
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Satisfied
Highly satisfied
YES
NO
3.FEEDBACK/SUGGESTION?
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