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INTRODUCTION

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Executive Summary

The project basically aims to find out the financial needs of individual and
suggest according to his requirement of money at various intervals.

In this project the special emphasis done on Mutual Fund product and
companies with ICICI Prudential and Kotak and to find out the analysis of
the clients of the companies.

The project reflects information about products and services provided by the
ICICI Prudential and Kotak in to their customer. This also include
requirement and ways to acquire clients acquisition has been explained and
the problems faced to handle the clients.

Also I have compared the mutual funds on different parameters such as risk
and returns, facilities, volume of investing money, good promotional
scheme, redemption and investing time.

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Objectives Of The Study

• To take an overview of Mutual Fund Industry and encapsulate the


various investment avenues available.

• To obtain a general understanding of the marketing strategies adopted


by Mutual Fund Industry.

• To make clients and let them know about different products of mutual
fund offered by the ICICI Prudential and KOTAK.

• To understand the problem faced by the existing clients and find ways
to solve their queries at your level.

• To study the market potential of ICICI Prudential Mutual Fund and


Kotak Mutual Fund.

• To study the response of clients, so as to make a comparative study


and also to study the preferred scheme and there investment time and
money.

• To give proper suggestion or recommendation to the company so that


they can overcome from their weakness and can increase there
number of clients and services.

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About the Company
Company Profile

ICICI Prudential Asset Management Company enjoys the strong parentage


of Prudential Plc, one of UK’s largest players in the Insurance and fund
management sectors and ICICI Bank, a well-known and trusted name in
financial services in India. ICICI Prudential Asset Management Company,
in a span of just over eight years, has forged a position of pre-eminence in
the Indian Mutual Fund industry as one of the largest asset management
companies in the country with asset under management of Rs. 59,573.08
crore (as of May 31, 2008). The company manages a comprehensive range
of schemes to meet the varying investment needs of its investors spread
across 68 cities in the country.

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 a range of products to suit different risk and maturity profiles.

Key Indicators
At inception - May 1998 As on May 31, 2008
Assets Under Management Rs. 160 Crore Rs. 59,573.08 Crore
Number of Funds Managed 2 40

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ICICI Ltd (Since merged into ICICI Bank Ltd) was
established in 1955 by the World Bank, the Government of India and the
Indian industry, to promote industrial development of India by providing
project and corporate finance to Indian industry. Since inception ICICI has
grown from a development bank to a financial conglomerate and has become
one of the largest public financial institutions in India .ICICI Bank is India’s
second-largest bank with total assets of about Rs. 344,658 crores as at March
31, 2007, and profit after tax of Rs. 3,110 crores for the year ended March
31, 2007 (Rs. 2,540 crores for the year ended March 31, 2006). ICICI Bank
has a network of about 710 branches and 45 extension counters and over
3,271 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 is the only Indian company to be rated
above the country rating by the international rating agency Moody’s and the
only Indian company to be awarded an investment grade international credit
rating. The bank enjoys the highest AAA (or equivalent) rating from all
leading Indian rating agencies. ICICI Bank was originally promoted in 1994
by ICICI Limited, and Indian Financial Institution and was its wholly owned
subsidiary. ICICI Bank setup 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
subsidiaries in the United Kingdom, Russia and Canada, branches in
Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance
Centre and representative offices in the United States, United Arab Emirates,

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China, South Africa and Bangladesh. UK subsidiary of ICICI Bank has
established a branch in Belgium. ICICI Bank is the most valuable bank in
India in terms of market capitalization.

Prudential began its first Asian operations in India in


1923. Established in 1848, and headquartered in London. Prudential plc is a
leading international financial services group, offering a significant portfolio
of life insurance and fund management products in the United Kingdom, the
United States, Asia and continental Europe. 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 31 Dec 2007, £267 billion in assets
under management and more than 26,000 employees worldwide as of
December 31, 2006. In the United Kingdom Prudential is a leading life and
pension provider offering a range of retail financial products. M&G is
Prudential’s UK and European Fund manager, with around £250 billion of
fund under management (as of 31 December 2006). Jackson National Life,
acquired by prudential in 1986, is a leading provider of long-term savings
and retirement products to retail and institutional customers throughout the
United States. In Asia, Prudential is the leading financial services group with
an extensive network of over 30 life insurance and 10 fund management
operations spanning 13 diverse markets.

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Senior Management ICICI Prudential Mutual Fund

Nimesh Shah- Managing Director and CEO

• Nimesh Shah joined ICICI Prudential AMC as its Managing Director and
CEO in July 2007.

• Nimesh has completed his Charted Accountancy and Cost Accountancy


qualifications. Prior to joining ICICI Prudential AMC, Nimesh was Senior
General Manager at ICICI Bank and has over 14 years experience in banking and
financial services. At ICICI Group, he has handled many responsibilities
including project finance, corporate banking and international banking.

• He was associated with one of the first batches of senior managers selected to lead
the foray of ICICI Bank into the international arena. He led ICICI Bank’s foray
into the Middle-Eastern region and Africa.

• Nimesh enjoys traveling. He is an ardent music buff and loves listening to old
Hindi music. He and his wife Kinnari live in Mumbai with their sons Mihir and
Anuj.

B Ramakrishna- Chief Financial Officer

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• Ramakrishna joined ICICI Prudential AMC in September 2004 as the Chief
Financial Officer.
• He has around 20 years of experience with companies like Union Carbide Ltd.,
Dalmiya Industries Ltd., ITC Agrotech and Services Ltd and Marico Industries.
His last position held at Marico was of General Manager Corporate Finance.
• He is a Chartered Accountant and has also successfully completed his Cost
Accountancy. In his role as Chief Financial Officer in the last 3 years at ICICI
Prudential AMC, he has assumed key responsibilities of Financial & Corporate
planning, Budgetary Control, Risk Management and Corporate Finance.
• Ramakrishna as he is fondly called loves traveling and is an ardent cricket and
music lover. He is married to Saguna and has two daughters Vasudha and
Manasa.

Manoj Agarwal-Chief Operating Officer

• Manoj Agarwal joined ICICI Prudential AMC in February 2007 in the capacity of
Chief Operating Officer.

• He has to his credit more than 19 years of experience in companies like American
Express Bank, GE Countrywide and HDFC Chubb General Insurance Company.
In his last position held at HDFC Chubb GIC he has Head of Operations and
Technology.

• An MBA in Finance from Jamanalal Bajaj Institute, Mumbai his responsibilities


in ICICI Prudential AMC includes developing a platform for delivering excellent
customer service, efficient cost structure, best practices standards for operating
procedures.

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Corporate Profile

Kotak Mahindra is one of India's leading financial institutions, offering complete


financial solutions that encompass every sphere of life. From commercial banking, to
stock broking, to mutual funds, to life insurance, to investment banking, the group caters
to the financial needs of individuals and corporates.

The group has a net worth of around Rs.3,200 crore and employs around 10,800
employees across its various businesses servicing around 2.6 million customer accounts
through a distribution network of branches, franchisees, representative offices and
satellite offices across 300 cities and towns in India and offices in New York, London,
Dubai, Mauritius and Singapore.

Kotak Mahindra Asset Management Company Limited (KMAMC), a wholly owned


subsidiary of KMBL, is the Asset Manager for Kotak Mahindra Mutual Fund (KMMF).
KMAMC started operations in December 1998 and has over 4 Lac investors in various
schemes. KMMF offers schemes catering to investors with varying risk - return profiles
and was the first fund house in the country to launch a dedicated gilt scheme investing
only in government securities.

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Sponsors
Kotak Mahindra Bank Limited.

The erstwhile Sponsor company, Kotak Mahindra Finance Limited (KMFL) was
converted into Kotak Mahindra Bank Limited (Kotak Bank) in March 2003 after being
granted a banking license by the Reserve Bank of India. Thus, the Sponsor of the Fund is
Kotak Bank. KMFL promoted by Mr. Uday S. Kotak, Mr. S. A. A. Pinto and Kotak &
Co., was incorporated on November 21, 1985 under the name Kotak Capital Management
Finance Limited. In early 1986, the promoters were joined by Late Mr. Harish Mahindra
and Mr. Anand G. Mahindra and the Company's name was changed to Kotak Mahindra
Finance Limited. Kotak & Co. (now Kotak & Co. Limited) is a highly respected trading
company of Mumbai, with international business.

Mr. Uday Kotak, a scion of the Kotak family, was an outstanding student through school,
Sydenham College (Bombay University) and Jamnalal Bajaj Institute of Management
Studies (Bombay University). Mr. S. A. A. Pinto, trained as a lawyer, has held senior
positions in well-known organisations like ICI and Grindlays Bank. For instance, he was
part of the team in Grindlays Bank, which started the first merchant banking unit in India
in 1968. Mr. Harish Mahindra was an industrialist of repute and had played a prominent
role in social service and public life, thereby earning him high esteem. Mr. Anand
Mahindra, an MBA from Harvard University, is the Managing Director of one of India's
most reputed industrial firms, Mahindra & Mahindra Limited. KMFL started with a
capital base of Rs. 30.88 lakh. From being a provider of a single financial product,
KMFL grew substantially during the seventeen years of its existence into a highly
diversified financial services company and has now converted into a Bank. As on
September 30, 2005, the net worth of Kotak Bank is around Rs. 800 crore and combined
with its subsidiaries, the Group net worth (before minority interest) is around Rs. 2,000
crore. There are over 47,000 shareholders of Kotak Bank. The Sponsor and its
subsidiaries / associates offer wide ranging financial services such as loans, lease and hire

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purchase, consumer finance, home loans, commercial vehicles and car finance,
investment banking, stock broking, primary market distribution of equity and debt
products and life insurance. The group has offices in over 88 Indian cities and also
present internationally in Mauritius, London, Dubai and New York. Kotak Mahindra
(UK) Limited, an ultimate subsidiary of Kotak Bank, is the first company owned from
India to be registered with the Financial Services Authority in UK. Kotak Mahindra Old
Mutual Life Insurance Limited is a joint venture between Kotak Bank and Old Mutual
Plc based in the UK and with large presence in the South African insurance market. Some
of the other subsidiaries of Kotak Bank are Kotak Mahindra Securities Limited, Kotak
Mahindra Prime Limited, Kotak Mahindra International Limited, Kotak Mahindra
Private-Equity Trustee Limited, Kotak Mahindra Investments Limited, Kotak Mahindra
Inc., and Kotak Forex Brokerage Limited.The Sponsor has been consistently profitable
and dividend paying company since inception. All group companies are professionally
run companies, employing over 5,000 professional staff including CAs, MBAs and
Engineers.

GROUP COMPANIES

• Kotak Mahindra Bank Ltd.


• Kotak Mahindra Capital Company Ltd.
• Kotak Mahindra Prime Ltd.
• Kotak Mahindra Asset Management Company

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Senior Management Kotak Mutual Fund

Chief Executive Officer: Mr. Sandesh Kirkire

• Mr. Sandesh Kirkire is a Mechanical Engineer, and holds a Masters degree in


Management Studies from Jamanalal Bajaj Institute of Management Studies
(JBIMS), Mumbai University.
• Following assignments with SBI Capital Markets Ltd. and ITC Bhadrachalam
Finance & Investments Ltd.
• Mr. Kirkire joined the Kotak Mahindra Group in 1994.
• He has 15 years of experience in the financial services space spans Corporate
Finance, Proprietary Trading, Investment Banking, Treasury Sales Debt Market
Trading and Debt Fund Management.
• Mr Kirkire has earned several awards in his last assignment as CIO (Debt) with
the AMC, a position he held till May 2005.

Chief Strategist and Global Head Equity: Mr. Alroy Lobo

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• Mr Alroy Lobo is a Mechanical Engineer, and has a Masters degree in
Management Studies from Sydenham Institute of Management, Mumbai
University.
• He has past experience of over 13 years in institutional equities.
• He worked as Equity Research Analyst (pharmaceuticals, technology), head of
research and equity strategist.
• His prior assignments were with HMG Financial Services in equity research and
with Godrej and Boyce in evaluating companies as vendors. Mr Lobo’s last
assignment was Head of Institutional Equities at Kotak Securities.

Chief Operations Officer : Mr. R. Krishnan

• He is a Chartered Accountant and Cost Accountant with over 11 years of


experience in the fields of Operations, Systems, Finance, MIS, Accounting, Audit
and Taxation.
• Prior to joining the Kotak Group in August 1994, Mr. Krishnan was a practicing
Chartered Accountant for two years, handling Accounting, Audit and Taxation
matters for clients.
• Since joining the Kotak Group, Mr. Krishnan has handled major assignments like
the US GAAP implementation for the erstwhile Kotak Mahindra Finance Limited
(KMFL) and subsidiary/group companies, Systems Development and
Implementation, for the Retail Assets Group and KMFL's transition to Kotak
Bank.
• Mr. Krishnan's latest assignment was as Head - Operations, Retail Assets, at
Kotak Bank. Mr. Krishnan joined Kotak Mutual in August 2004 as Senior Vice
President, and Chief Operations Officer, and oversees the Operations, Accounting
and IT functions of the Fund.

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INTRODUCTION TO
MUTUAL FUND

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Introduction to Mutual Fund

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:

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MUTUAL FUND OPERATION FLOW CHART

There are many entities involved in this


and the diagram below illustrates the organizational set up of a mutual fund:

ORGANIZATION OF A MUTUAL FUND

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SPONSOR, TRUSTEE, AMC AND OTHER
CONSTITUENTS

• Mutual funds in India have a 3-tier structure of Sponsor-Trustee-AMC.

• Sponsor is the promoter of the fund.

• Sponsor creates the AMC and the trustee company and appoints the boards of
both these companies, with SEBI approval.

• The mutual fund is formed as trust in India, and not as a company.

• In the US mutual funds are formed as investment companies.

• The AMC’s capital is contributed by the sponsor.

• Investors’ money is held in the Trust (the mutual fund). The AMC gets a fee for
managing the funds, according to the mandate of the investors.

• The trustees make sure that the funds are managed according to the investors’
mandate.

• Sponsor should have at least a 5-year track record in the financial services
business and should have made profit in at least 3 out of the 5 years.

• Sponsor should contribute at least 40% of the capital of the AMC.

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• Trustees are appointed by the sponsor with SEBI approval.

• At least 2/3 of trustees should be independent.

• At least ½ of the AMC’s Board should be of independent members

• An AMC cannot engage in any business other than portfolio advisory and
management.

• An AMC of one fund cannot be Trustee of another fund.

• AMC should have a net worth of at least Rs. 10 crore at all times.

• AMC should be registered with SEBI.

• AMC signs an investment management agreement with the trustees.

• Trustee Company and AMC are usually private limited companies.

• Trustees are required to meet at least 4 times a year to review the AMC.

• The investors’ funds and the investments are held by the custodian, who is the
guardian of the funds and assets of investors.

• Sponsor and the custodian cannot be the same entity.

• R&T agents manage the sale and repurchase of units and keep the unit holder
accounts.

• If the schemes of one fund are taken over by another fund, it is called as scheme

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take over. This requires SEBI and trustee approval.

• If two AMCs merge, the stakes of sponsors changes and the schemes of both
funds come together. High court, SEBI and Trustee approval needed.

• If one AMC or sponsor buys out the entire stake of another sponsor in an AMC,
there is a take over of AMC. The sponsor who has sold out, exits the AMC. This
needs high court approval as well as SEBI and Trustee approval.

• Investors can choose to exit at NAV if they do not approve of the transfer. They

have a right to be informed. No approval is required, in the case of open-ended


funds.

• For closed-end funds, investor approval is required for all cases of merger and
takeover (as per the curriculum). Closed end fund investors also do not have exit
option.

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What is a Mutual Fund?

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
through these investments and the capital appreciations realized by the scheme are shared
by its unit holders in proportion to the number of units owned by them (pro rata). Mutual
Fund offers an indirect route of participation in stock markets for small investor, who
otherwise would have neither the means, time nor the expertise to undertake portfolio
investments successfully. 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 investible surplus of as little as 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 today’s 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. An individual also finds it difficult
to keep track of ownership of his assets, investments, brokerage dues and bank
transactions etc.
A mutual fund is the answer to all these situations. It appoints professionally qualified
and experienced staff that manages each of these functions on a full time basis. The large
pool of money collected in the fund allows it to hire such staff at a very low cost to each

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investor. In effect, the mutual fund vehicle exploits economies of scale in all three areas -
research, investments and transaction processing.
Globally, there are thousands of firms offering tens of thousands of mutual funds with
different investment objectives. Today, mutual funds collectively manage almost as much
as or more money as compared to banks.

History of Mutual Funds in India and role of


SEBI

Unit Trust of India was the first mutual fund set up in India in the year 1963. In early
1990s, Government allowed public sector banks and institutions to set up mutual funds.

In the year 1992, Securities and exchange Board of India (SEBI) Act was passed. The
objectives of SEBI are – to protect the interest of investors in securities and to promote
the development of and to regulate the securities market.

As far as mutual funds are concerned, SEBI formulates policies and regulates the mutual
funds to protect the interest of the investors. SEBI notified regulations for the mutual
funds in 1993. Thereafter, mutual funds sponsored by private sector entities were allowed
to enter the capital market. The regulations were fully revised in 1996 and have been
amended thereafter from time to time. SEBI has also issued guidelines to the mutual
funds from time to time to protect the interests of investors.

All mutual funds whether promoted by public sector or private sector entities including
those promoted by foreign entities are governed by the same set of Regulations. There is
no distinction in regulatory requirements for these mutual funds and all are subject to
monitoring and inspections by SEBI. The risks associated with the schemes launched by
the mutual funds sponsored by these entities are of similar type. It may be mentioned here
that Unit Trust of India (UTI) is not registered with SEBI as a mutual fund (as on January
15, 2002).

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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

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

Second 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.

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

With the entry of private sector funds in 1993, a new era started in the Indian mutual fund
industry, giving the Indian investors a wider choice of fund families. Also, 1993 was the
year in which the first Mutual Fund Regulations came into being, under which all mutual
funds, except UTI were to be registered and governed. The erstwhile Kothari Pioneer
(now merged with Franklin Templeton) was the first private sector mutual fund registered
in July 1993.

The 1993 SEBI (Mutual Fund) Regulations were substituted by a more comprehensive
and revised Mutual Fund Regulations in 1996. The industry now functions under the
SEBI (Mutual Fund) Regulations 1996.

The number of mutual fund houses went on increasing, with many foreign mutual funds
setting up funds in India and also the industry has witnessed several mergers and
acquisitions. As at the end of January 2003, there were 33 mutual funds with total assets
of Rs. 1,21,805 crores. The Unit Trust of India with Rs.44,541 crores of assets under
management was way ahead of other mutual funds.

Fourth Phase – since February 2003

In February 2003, following the repeal of the Unit Trust of India Act 1963 UTI was
bifurcated into two separate entities. One is the Specified Undertaking of the Unit Trust
of India with assets under management of Rs.29,835 crores as at the end of January 2003,
representing broadly, the assets of US 64 scheme, assured return and certain other
schemes. The Specified Undertaking of Unit Trust of India, functioning under an
administrator and under the rules framed by Government of India and does not come
under the purview of the Mutual Fund Regulations.

The second is the UTI Mutual Fund Ltd, sponsored by SBI, PNB, BOB and LIC. It is
registered with SEBI and functions under the Mutual Fund Regulations. With the
bifurcation of the erstwhile UTI which had in March 2000 more than Rs.76,000 crores of
assets under management and with the setting up of a UTI Mutual Fund, conforming to
the SEBI Mutual Fund Regulations, and with recent mergers taking place among

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different private sector funds, the mutual fund industry has entered its current phase of
consolidation and growth.

The graph indicates the growth of assets over the years.

GROWTH IN ASSETS UNDER MANAGEMENT

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Benefits of Investing in Mutual Fund

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Mutual Funds offer several benefits to an investor that unmatched by the other
investment options. The major benefits are good post-tax returns and reasonable safety,
the other benefits in investing in Mutual Funds are:

Professional Management:

Mutual Funds employ the services of experienced and skilled professionals and dedicated
investment research team. The whole team analyses the performance and balance sheet of
companies and selects them to achieve the objectives of the scheme. The managers have
real-time access to crucial market information and are able to execute trades on the
largest and most cost-effective scale.

Optimum Returns:

By nature, a mutual fund is multiple investment opportunities bundled into one. Normally
returns on investment from a single security depend on how well or how poorly the
company fares. But with mutual funds your money is invested across different companies
or sectors. By doing this your investment returns get averaged. This means, even if two
investments go bad other investments may average your returns.

Diversification:

The biggest advantage of mutual funds is the diversification of which it provides to the
funds of Investors. Diversification is the idea of spreading out your money across many
different types of investments. When one investment is down another might be up.
Choosing to diversify your investment holdings reduces your risk tremendously.
The most basic level of diversification is to buy multiple instruments rather than just one.
Mutual funds are set up to buy many instruments (even hundreds or thousands). Beyond
that, you can diversify even more by purchasing different kinds of stocks, then adding
bonds, then international, and so on.

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It could take you weeks to buy all these investments, but if you purchased a few mutual
funds you could be done in a few hours because mutual funds automatically diversify in a
predetermined category of investments (i.e. - growth companies, low-grade corporate
bonds, international small companies).

Liquidity:

The investor can get the money promptly at the net asset value related prices from the
Mutual Funds open-ended schemes. In close-ended schemes, the units can be sold on a
stock exchange at the prevailing market price.

Low Cost and Transparency:

Investment in Mutual Funds is a less expensive way in comparison to a direct investment


in capital market. Moreover Mutual Funds have to disclose their holdings, investment
pattern and the necessary information before all investors under a regulation framework.

Flexibility and Affordability:

Investment in Mutual Funds offers a lot of flexibility with features of schemes such as
regular investment plan, regular withdrawal plans and dividend reinvestment plans
enabling systematic investment or withdrawal of funds. Small investors with low
investment fund are unable to high-grade or blue chip stocks. An investor through Mutual
Funds can be benefited from a portfolio.

Convenient Administration:

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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.

Tax-free Returns:

Currently, earnings from equity mutual funds in the form of dividends are tax-free. Also
income generated from investments in an equity scheme for more than a year is tax-free
(That is, if there is no long-term capital gain).

Personal Service:

One call puts you in touch with a specialist who can provide you with information you
can use to make your own investment choice. They will provide you personal assistance
in buying and selling your fund units, provide fund information and answer questions
about your account status.

Well regulated:

All mutual funds are registered with Securities and Exchange Board of India (SEBI) and
function within the provisions and regulations that protect the interests of investors. SEBI
not only regulates the working of stock exchanges and their intermediaries but also
prohibits fraudulent and unfair trade practices relating to securities markets and insider
trading in securities, with the imposition of monetary penalties on erring market
intermediaries.

Different Types of Mutual Fund Schemes

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There are wide varieties of Mutual Fund schemes that cater to investor
needs, whatever the age, financial position, risk tolerance and return
expectations. The mutual fund schemes can be classified according to both
their investment objective (like income, growth, tax saving) as well as the
number of units (if these are unlimited then the fund is an open-ended one
while if there are limited units then the fund is close-ended).

• By Structure
– Open Ended Schemes
– Close Ended Schemes
– Interval Schemes

• By Investment Objectives
– Growth Schemes
– Income Schemes
– Balance Schemes
– Money Market Schemes

• Other Schemes
– Tax Saving Schemes

• Special Schemes
– Index Schemes
– Sector Specific Schemes

• By Structure

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Open-ended schemes

An open-ended fund or scheme is one that is available for subscription and repurchase on
a 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 schemes is liquidity. These funds
are sold at the NAV based prices, generally calculated on every business day. These
schemes have unlimited capitalization, open-ended schemes do not have a fixed maturity
- i.e. there is no cap on the amount you can buy from the fund and the unit capital can
keep growing. These funds are not generally listed on any exchange.
a) Any time exit option : The issuing company directly takes the responsibility of
providing an entry and an exit. This provides ready liquidity to the investors and avoids
reliance on transfer deeds, signature verifications and bad deliveries.

b) Tax advantage : Though Budget 2004 proposals envisage a tax rate of 20.91%
(Corporate investors) and 13.06875%(Non-Corporate investors) on dividend distribution
made by the Debt funds, the funds continue to remain attractive investment vehicles. In
equity plans there is no distribution tax.

c) Any time entry option : An open-ended fund allows one to enter the fund at any time
and even to invest at regular intervals (a systematic investment plan).

Close-ended Fund/ Scheme

A close-ended fund or 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 the 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 the mutual fund through periodic repurchase at NAV
related prices. SEBI Regulations stipulate that at least one of the two exit routes is

30
provided to the investor i.e. either repurchase facility or through listing on stock
exchanges. These mutual funds schemes disclose NAV generally on weekly basis.

Interval Fund/Scheme

These schemes combine the feature of open ended and closed ended schemes. They may
be traded on the stock exchange or may be open for sale or redemption during the
predetermined intervals at NAV based prices.

• By Investment Objectives

Mutual funds have specific investment objectives such as growth of capital, safety of
principal, current income or tax-exempt income. In general mutual funds fall into three
general categories:

• Equity Funds invest in shares or equity of companies.


• Fixed-Income funds (Debt Funds) invest in government or corporate securities
that offer fixed rates of return.
• Balanced Funds invest in a combination of both stocks and bonds.

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 risks. These schemes provide different options to the investors like
dividend option, capital appreciation, etc.

Growth / Equity Oriented Scheme

31
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 risks. These schemes provide different options to the investors
like dividend option, capital appreciation, etc. and the investors may choose an option
depending on their preferences. 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.

Debt Oriented Scheme


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 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.

Income / Debt Oriented Scheme

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 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 rates 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 Fund

32
The aim of balanced funds is to provide both growth and regular income as such schemes
invest both in equities and fixed income securities in the proportion indicated in their
offer documents. These are appropriate for investors looking for moderate growth. They
generally invest 40-60% in equity and debt instruments. These funds are also affected
because of fluctuations in share prices in the stock markets. However, NAVs of such
funds are likely to be less volatile compared to pure equity funds.

Money Market or Liquid Fund

These funds are also 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 deposit, 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

Tax Saving Schemes

Some schemes are offered specifically for the investor to avoid being taxed heavily.
Equity Linked Savings Scheme (ELSS) and Pension Funds are exempt from tax under
section 88 of the Income Tax Act, 1961 in India. Equity linked saving schemes(ELSS),
these schemes are open ended growth schemes with a mandatory 3 year lock in. these
schemes offer the benefit of section 80(C) IT Act, up to a maximum of Rs 1,00,000.
The main feature of ELSS are-
Repurchase are permitted after a period of 3 years.
Lock in period : The units under ELSS are prohibited from trading ,pledging and transfer
during the lock in period of 3 years.

• Special Schemes

33
Index Schemes

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. NAVs of such schemes would rise or fall in
accordance with the rise or fall in the index, though not exactly by the same percentage
due to some factors known as "tracking error" in technical terms. Necessary disclosures
in this regard are made in the offer document of the mutual fund scheme.

Sector Specific Schemes

These are the funds/schemes which invest in the securities of only those sectors or
industries as specified in the offer documents. e.g. Pharmaceuticals, Software, Fast
Moving Consumer Goods (FMCG), Petroleum stocks, etc. The returns in these funds are
dependent on the performance of the respective sectors/industries. While these funds may
give higher returns, they are more risky compared to diversified funds. Investors need to
keep a watch on the performance of those sectors/industries and must exit at an
appropriate time. They may also seek advice of an expert.

Cost of investing in Mutual Funds

34
There are four type of cost associated with mutual fund investing.

• Initial Expenses
• Entry Load
• Annual Recurring Expenses
• Exit Load

Initial Expenses

Initial expenses include items such as brokerage fees and commission, Marketing and
advertising expenses , printing and distribution costs and so on which are incurred when
the schemes is launched. Initial expenses up to 6% of the amount mobilized can be
charged to the schemes.

Entry Load

Entry load or sales load is the load imposed when the load imposed when the units are
purchased. It may be up to 2 percent of course for many schemes it is nil. Schemes that
have an entry load are called load schemes and schemes that have no entry load are called
no load schemes.

Annual Recurring Expenses

35
It refers to the outgoing fees and expenses of operating various schemes. These include
the investment management and advisory fees, trustee fees, audit fees, register fees, and
so on. The annual recurring expenses are expressed as a percentage of the amount of the
respective schemes average weekly net assets. Annual recurring expenses tend to be more
for equity schemes and less for liquid schemes.

Exit Load

Exit load or redemption load is the load imposed when the units are sold back to the
mutual fund. In practice it varies from 0 % to 3% this load is imposed to deter investors
from withdrawing from the schemes.

Risk involved in mutual funds

36
Different mutual fund categories as previously defined have inherently different risk
characteristics and should not be compared side by side. A bond with below-average risk
for examples should not be compared to stock fund with below average risk. Even though
both funds have low risk for their respective categories, stock funds overall have a higher
risk / returns potential than bond funds.
Mutual fund faces risks based on the investments they hold. For example, a bond funds
faces interest rate risk and income risk. Bond values are inversely related to interest rates.
If interest rates go up, bond values will go down and vice versa. Bond yields are directly
related to interest rates falling as interest rates falls and rising as interest rises. Income
risk is greater for short term bond fund than for a long term bond fund.

• Managing Risk

Mutual funds offer incredible flexibility in managing investment risk. Diversification


and Automatic Investing (SIP) are two key techniques you can use to reduce your
investment risk considerably and reach your long-term financial goals.

Diversification

When you invest in one mutual fund, you instantly spread your risk over a number of
different companies. You can also diversify over several different kinds of securities by
investing in different mutual funds, further reducing your potential risk. Diversification is
a basic risk management tool that you will want to use throughout your lifetime as you
rebalance your portfolio to meet your changing needs and goals. Investors, who are
willing to maintain a mix of equity shares, bonds and money market securities, have a
greater chance of earning significantly higher returns over time than those who invest in
only the most conservative investments. Additionally, a diversified approach to investing
-- combining the growth potential of equities with the higher income of bonds and the
stability of money markets -- helps moderate your risk and enhance your potential return.
Systematic Investment Plan (SIP)

37
The Unit holders of the Scheme can benefit by investing specific Rupee amounts
periodically, for a continuous period. Mutual fund 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. Here is an illustration using hypothetical figures indicating
how the SIP can work for investors:
Suppose an investor would like to invest Rs.1, 000 under the Systematic Investment Plan
on a quarterly basis.
Amount Invested (Rs.) Purchase Price (Rs.) No. of Units
Purchased

Initial Investment 1000 10 100

1 1000 8.20 121.95

2 1000 7.40 135.14

3 1000 6.10 163.93

4 1000 5.40 185.19

5 1000 6.00 166.67

6 1000 8.20 121.95

7 1000 9.25 108.11

8 1000 10.00 100.00

9 1000 11.25 88.89

10 1000 13.40 74.63

11 1000 14.40 69.44

TOTAL 12,000 - 1,435.90

Average unit cost Rs 12,000/1,435.9 = Rs 8.36

Average unit price 109.6/12 = Rs 9.13


Unit price at beginning of next quarter Rs 14.90
Market value of investment 1435.9 * 14.90= Rs 21,395/-
The investor liquidates his units and gets back Rs 21,395/-
Using the SIP strategy the investor can reduce his average cost per unit. The investor gets
the advantage of getting more units when the market is turned down.
• Types of Risk

38
All investments involve some form of risk. Even an insured bank account is subject to the
possibility that inflation will rise faster than your earnings, leaving you with less real
purchasing power than when you started (Rs. 1000 gets you less than it got your father
when he was your age). Consider these common types of risk and evaluate them against
potential rewards when you select an investment.

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
Sometimes referred to as "loss of purchasing power." Whenever inflation sprints forward
faster than the earnings on your investment, you run the risk that you'll actually be able to
buy less, not more. Inflation risk also occurs when prices rise faster than your returns.

Credit Risk
The possibility that a bond issuer will fail to repay interest and principal in a timely
manner. It’s also called default 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?

Interest Rate
Changing interest rates affect both equities and bonds in many ways. Investors are
reminded that "predicting" which way rates will go is rarely successful. A diversified
portfolio can help in offsetting these changes.
Employees Risk

39
An industries' key asset is often the personnel who run the business i.e. intellectual
properties of the key employees of the respective companies. Given the ever-changing
complexion of few industries and the high obsolescence levels, availability of qualified,
trained and motivated personnel is very critical for the success of industries in few
sectors. It is, therefore, necessary to attract key personnel and also to retain them to meet
the changing environment and challenges the sector offers.

Exchange Risk
A number of companies generate revenues in foreign currencies and may have
investments or expenses also denominated in foreign currencies. Changes in exchange
rates may, therefore, have a positive or negative impact on companies which in turn
would have an effect on the investment of the fund.

Investment Risk
The sectoral 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.

Government Policies
Changes in Government policy especially in regard to the tax benefits may impact the
business prospects of the companies leading to an impact on the investments made by the
fund.

Facilities Provided By Mutual Funds

40
Growth Option

Dividend is not paid –out under a growth option and the investors realize only the capital
appreciation on the investment (by an increase in NAV).

Dividend Payout Option

Dividend is paid out to investors under the dividend Payout Option. However, the NAV
of the mutual fund scheme falls to the extent of the dividend payout.

Dividend Re-investment Option

Here the dividend accrued on mutual funds is automatically re-investing in purchasing


additional units in open ended funds. In most cases mutual fund offers the investors an
option of collecting dividends or re-investing the same.

Retirement Pension Option

Some schemes are linked with retirement. Individual participate in these options for
themselves, and corporate participate for their employees.

Insurance Option

Certain Mutual Fund offer schemes that provides insurance cover to investor as an add
benefit.

41
ICICI PRUDENTIAL

MUTUAL FUND
PRODUCTS

Fund Facts

42
You are unique - and that's why what's right for someone else may not be right for you.
So is the case with your investment needs. As an investor you could be very cautious or
very aggressive or someone who would like to maintain a balance.

We at ICICI Prudential Mutual Fund, understand this reality and therefore to meet the
investment needs of different kinds of investors we offer a range of solutions that enable
them to create a portfolio of the tenor, return and risk that they desire.

On the debt market side, from simple parking solutions for efficient utilization of each
rupee for each day, to long term interest rate view-based products, our range spans
varying time horizons and incomes. Our debt products are managed to minimize liquidity
& credit risks and also manage interest rate risks. They come with periodic dividend and
growth options to enable you to choose your income streams in a manner most efficient
for your needs. On the equity market side, our equity funds offer a choice of size, sectors,
themes and styles to enable participation in the broad market and its segments.

The chart below plots schemes offered by ICICI Prudential Mutual Fund on a risk-return
scale that helps you zero-in on the relevant schemes that match your risk taking ability
and the returns you desire.

43
ICICI Prudential Dynamic Plan

Investment Philosophy

44
lCICI Prudential Dynamic Plan is a diversified equity plan that follows the growth
investment philosophy to invest in a portfolio of large, mid and small-cap stocks. It has
the ability to move gradually into cash as the market gets over-valued. It offers a portfolio
of stocks selected through rigorous bottom-up fundamental analysis across market.

Performance Record

Date Period NAV (Rs) Dynamic Plan Benchmark


Return Index Return
30-Apr-09 79.06
30-Apr-08 Last 1 year 67.14 17.71% 26.29%
29-Apr-06 Last 3 years 25.96 44.84% 39.43%
30-Apr-04 Last 5 years 10.53 49.57% 40.73%
31-Oct-03 Since Inception 10.00 45.62% 36.01%

120.00%

100.00%

80.00%
Dynamic Plan
60.00%
S&P CNX Nifty
40.00%

20.00%

0.00%
2003-04 2004-05 2005-06 2006-07 2007-08

Year 2003-04 2004-05 2005-06 2006-07 2007-08


Dynamic Plan 81.91% 43.49% 98.52% 18.16% 14.55%
S&P CNX Nifty 80.85% 14.89% 67.15% 12.35% 23.74%

Key Features ICICI Prudential Dynamic Plan

45
Type Open-ended Equity fund

0 - 100% = Equity & Equity related securities. 0 - 100% = Debt &


Investment Pattern
Money Market Instruments

To generate capital appreciation by actively investing in equity /


equity related securities. For defensive considerations, the
Scheme may invest in debt, money market instruments, to the
Investment Objective
extent permitted under the Regulations. The AMC will have the
discretion to completely or partially invest in any of the type of
securities stated above so as to maximize the returns.

Options Growth & Dividend

Default Option Dividend Reinvestment

Application Amount Rs.5,000/- (plus in multiples of Re. 1).

Min. Additional Investment Rs.500/- and in multiples thereof

(i) For investments of less than Rs. 5 Crores : Entry load at


Entry Load 2.25% of applicable NAV.(ii)For investments of Rs. 5 crores and
Above : Nil

(i) For investment of less than Rs. 5 Crores : (a) 1% of applicable


NAV if the amount sought to be redeemed or switched out is
invested upto 6 months from the date of allotment.(b) 0.5% of
applicable NAV if the amount sought to be redeemed or switched
Exit Load
out is invested for more than 6 months but upto 1 year from the
date of allotment.(c) Nil if the amount sought to be redeemed or
switched out is invested for more than 1 year from the date of
allotment.(ii) For investment of Rs. 5 Crores and above : Nil

Generally Within 3 business day for Specified RBI locations and


Redemption Cheques Issued
additional 3 Business Days for Non-RBI locations

Minimum Redemption Amt. Rs. 500/-

Monthly: Minimum Rs. 1000 + 5 post-dated cheques for a


Systematic Investment Plan
minimum of Rs. 1000 each. Quarterly: NA

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.00%

Other Recurring Expenses 1.50%

Total 2.50%

46
ICICI Prudential Growth Plan
Investment Philosophy

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

Performance Record

Date Period NAV (Rs) Growth Plan Benchmark


Return Index Return
30-Apr-09 111.17
30-Apr-08 Last 1 year 95.16 16.77% 26.29%
29-Apr-06 Last 3 years 41.34 38.98% 39.43%
30-Apr-04 Last 5 years 18.49 43.10% 40.73%
9-July-98 Since Inception 10.00 27.81% 18.69%

120.00%

100.00%

80.00%
Growth Plan
60.00%
S&P CNX Nifty
40.00%

20.00%

0.00%
2003-04 2004-05 2005-06 2006-07 2007-08

Year 2003-04 2004-05 2005-06 2006-07 2007-08


Growth Plan 100.01% 22.60% 82.83% 10.21% 15.65%
S&P CNX Nifty 80.85% 14.89% 67.15% 12.35% 23.74%

Key Features ICICI Prudential Growth Plan

47
Type Open-ended Equity Fund

Equity & Equity related 95% & Debt, Money Market and Cash
Investment Pattern
5%.

To seek to generate long-term capital appreciation from a


Investment Objective portfolio that is invested predominantly in equity and equity
related securities

Options Growth & Dividend

Default Option Dividend Reinvestment

Application Amount Rs.5,000/- (plus in multiples of Re. 1)

Min. Additional Investment Rs.500/- and in multiples thereof

(i) For investments of less than Rs. 5 Crores : Entry load at


Entry Load 2.25% of applicable NAV.(ii)For investments of Rs. 5 crores
and Above : Nil

(i) For investment of less than Rs. 5 Crores : (a) 1% of


applicable NAV if the amount sought to be redeemed or
switched out is invested upto 6 months from the date of
allotment.(b) 0.5% of applicable NAV if the amount sought to
Exit Load be redeemed or switched out is invested for more than 6
months but upto 1 year from the date of allotment.(c) Nil if the
amount sought to be redeemed or switched out is invested for
more than 1 year from the date of allotment.(ii) For investment
of Rs. 5 Crores and above : Nil

Generally Within 3 business day for Specified RBI locations


Redemption Cheques Issued
and additional 3 Business Days for Non-RBI locations

Minimum Redemption Amt. Rs. 500/-

Monthly: Minimum Rs. 1000 + 5 post-dated cheques for a


Systematic Investment Plan
minimum of Rs. 1000 each. Quarterly: NA

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 1.25%

Total 2.50%

48
ICICI Prudential Tax Plan

Investment Philosophy

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

Performance

Date Period NAV (Rs) Tax Plan Benchmark


Return Index
Return
30-Apr-09 104.98
30-Apr-08 Last 1 year 87.76 19.56% 26.29%
29-Apr-06 Last 3 years 47.31 30.37% 39.43%
30-Apr-04 Last 5 years 12.03 54.16% 40.73%
19-Aug-2000 Since Inception 10.00 31.01% 16.72%

140.00%
120.00%
100.00%
80.00%
Tax Plan
60.00%
S&P CNX Nifty
40.00%
20.00%
0.00%
2003-04 2004-05 2005-06 2006-07 2007-08
-20.00%

49
50
Key Features ICICI Prudential Tax Plan

Type Open-ended Equity Linked Saving Scheme

Equity & Equity related instruments upto 90% &


Investment Pattern
Debt, Money Market and Cash upto 10%.

To seek to generate long-term capital appreciation


Investment Objective from a portfolio that is invested predominantly in
equity and equity related securities

Growth & Dividend

Default Option Dividend Reinvestment

Application Amount Rs.500/- (plus in multiples of Re. 1)

Min. Additional Investment Rs.500/- and in multiples thereof

(i) For investments of less than Rs. 5 Crores : Entry


Entry Load load at 2.25% of applicable NAV.(ii)For investments
of Rs. 5 crores and Above : Nil

Exit Load Nil

Generally Within 3 business day for Specified RBI


Redemption Cheques Issued locations and additional 3 Business Days for Non-
RBI locations after lock-in period of 3 Years.

Minimum Redemption Amt. Rs. 500/-

Monthly: Minimum Rs. 500 or multiples thereof & 5


Systematic Investment Plan post-dated cheques for a minimum of Rs. 500 for a
block of 5 months in advance.

Systematic Withdrawal Plan Not available

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 1.25%

Total 2.50%

51
ICICI Prudential FMCG Fund

Investment Philosophy

ICICI Prudential FMCG Fund is an open-ended equity fund that predominantly invests in
companies with a retail and consumption focus. The portfolio is made up of less number
of scrips, chosen to reflect the prospects of the FMCG sector. Within the broad definition
of the sector, scrips are held across sub sectors like food, retail distribution, apparel, and
consumables. The fund adopts a bottom-up stock selection strategy to choose its
investments.

Performance

Date Period NAV (Rs) FMCG Fund Benchmark


Return Index
Return
30-Apr-08 49.96
30-Apr-07 Last 1 year 38.74 28.87% 28.97%
29-Apr-05 Last 3 years 18.85 38.31% 28.39%
30-Apr-03 Last 5 years 7.48 46.14% 26.08%
31-Mar-99 Since Inception 10.00 19.36% 7.64%

52
140.00%
120.00%
100.00%
80.00%
60.00% FMCG Fund
40.00% CNX FMCG
20.00%
0.00%
-20.00%
-40.00% 2003-04 2004-05 2005-062006-07 2007-08

YEAR 2003-04 2004-05 2005-06 2006-07 2007-


08
FMCG Fund 55.91% 62.26% 118.49% -0.99% 18.96%
CNX FMCG 28.41% 13.13% 111.56% -19.93% 22.99%

Key Features ICICI Prudential FMCG Fund

Type Open-ended FMCG Sectoral Fund

Equity & Equity related in FMCG Companies 90% in


Investment Pattern
& Debt, Money Market and Cash 10%.

To seek to generate long-term capital appreciation


from a portfolio that is invested predominantly in
Investment Objective
equity and equity related securities of FMCG
Companies.

Options Growth & Dividend

Default Option Dividend Reinvestment

Application Amount Rs.5,000/- (plus in multiples of Re. 1)

Min. Additional Investment Rs.500/- and in multiples thereof

53
(i) For investments of less than Rs. 5 Crores : Entry
Entry Load load at 2.25% of applicable NAV.(ii)For investments
of Rs. 5 crores and Above : Nil

Exit Load Nil

Generally Within 3 business day for Specified RBI


Redemption Cheques Issued locations and additional 3 Business Days for Non-
RBI locations

Minimum Redemption Amt. Rs. 500/-

Monthly: Minimum Rs. 1000 + 5 post-dated cheques


Systematic Investment Plan
for a minimum of Rs. 1000 each. Quarterly: NA

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 1.25%

Total 2.50%

ICICI Prudential Infrastructure Fund

Investment Philosophy

ICICI Prudential Infrastructure Fund is an open-ended equity fund focused on capturing


the opportunity presented by the long term growth potential of the Indian Infrastructure
sector. It invests across infrastructure sectors such as Cement, Power, Telecom, Oil and
Gas, Construction, Banking etc.

Date Period NAV (Rs) Infrastructure Benchmark


Fund Return Index Return
30-Apr-08 29.13
30-Apr-07 Last 1 year 19.19 51.62% 26.29%
31-Aug-05 Since Inception 10.00 49.34% 33.64%

Performance

54
60.00%

50.00%

40.00%
Infrastructure Fund
30.00%
S&P CNX Nifty
20.00%

10.00%

0.00%
2005-06 2006-07 2007-08

Year 2005-06 2006-07 2007-08


Infrastructure Fund 48.40% 18.99% 52.17%
S&P CNX Nifty 42.69% 12.35% 23.74%

Key Features ICICI Prudential Infrastructure Fund

Type Open-ended Equity Fund

Equity and Equity related instruments in


Investment Pattern infrastructure sector 70% to 100% & Debt, Money
Market Instruments and Call money 0% to 30%.

To generate capital appreciation and income


distribution to unit holders by investing
predominantly in equity/equity related securities of
Investment Objective
the companies belong to the infrastructure industries
and balance in debt securities and money market
instruments including call money.

Options Growth and Dividend Option.

Default Option Dividend Reinvestment

Application Amount Rs.5000 (plus in multiple of Re.1).

Minimum Rs. 500 per application & in multiples of


Min. Additional Investment
Re.1 thereafter.

(i) For investments of less than Rs. 5 Crores : Entry


Entry Load load at 2.25% of applicable NAV.(ii)For investments
of Rs. 5 crores and Above : Nil

Exit Load (i) For investment of less than Rs. 5 Crores : (a) 1%
of applicable NAV if the amount sought to be
redeemed or switched out is invested upto 6 months

55
from the date of allotment.(b) 0.5% of applicable
NAV if the amount sought to be redeemed or
switched out is invested for more than 6 months but
upto 1 year from the date of allotment.(c) Nil if the
amount sought to be redeemed or switched out is
invested for more than 1 year from the date of
allotment.(ii) For investment of Rs. 5 Crores and
above : Nil

Generally Within 3 business day for Specified RBI


Redemption Cheques Issued locations and additional 3 Business Days for Non-
RBI locations.

Minimum of Rs. 500 and in multiples of Re.1


Minimum Redemption Amt.
thereafter.

Monthly: Minimum Rs. 1000 + 5 post-dated cheques


Systematic Investment Plan
for a minimum of Rs. 1000 each.

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 1.25%

Total 2.50%

ICICI Prudential Liquid Plan

Investment Philosophy

ICICI Prudential Liquid Plan's objective is to enable idle cash to be deployed for very
short periods of time. Therefore it seeks to invest only in very liquid, short term
instruments, of the highest credit quality. The intent is to protect the portfolio from risks
of changes in value, by focusing on earning interest income, without taking undue risks.
The portfolio is entirely made up for short term debt securities and manages to keep a
low, but steady rate of growth in NAV.

Date Period NAV (Rs) Liquid Plan Benchmark


Return Index Return
30-Apr-08 19.93
30-Apr-07 Last 1 year 18.50 7.74% 7.17%
29-Apr-05 Last 3 years 16.36 6.80% 6.37%
30-Apr-03 Last 5 years 14.94 5.94% 5.49%

56
24-Jun-98 Since Inception 10.00 7.25% ----

Performance

9.00%
8.00%
7.00%
6.00%
5.00% Liquid Plan
4.00% Crisil Liquid Fund Index
3.00%
2.00%
1.00%
0.00%
2003-04 2004-05 2005-06 2006-07 2007-08

YEAR 2003-04 2004-05 2005-06 2006-07 2007-


08
Liquid Plan 4.75% 4.60% 6.48% 5.78% 7.90%
Crisil Liquid 4.34% 4.17% 4.86% 6.39% 7.50%

Key Features ICICI Prudential Liquid Plan

Type Open-ended Liquid Income Fund

Investment Pattern Money Market upto 80% & Debt Instruments upto 20%

To generate reasonable returns from low risk investments


Investment Objective
which provide high level of liquidity.

Growth, Dividend Payout (Quarterly & Half Yearly),


Options Dividend Reinvestment (Daily, Weekly, Monthly, Quarterly
& Half Yearly).

Default Option Dividend Reinvestment with weekly frequency.

Application Amount a). Growth Option : Rs. 15000/-. b). Dividend Option : Rs. 1

57
lac c) Institutional Option : Rs. 1 cr d) Institutional Plus
Option : Rs. 3 cr e) Super Institutional Growth Option : Rs. 5
crs (plus in multiples of Re.1)

a). Growth Option : Rs. 5000/-. b). Dividend Option : Rs.


5000/-. c) Institutional Option : Rs. 1 lac d) Institutional Plus
Min. Additional Investment
Option : Rs. 1 lac e) Super Institutional Growth Option : Rs.
1 lac (plus in multiples of Re.1)

Entry Load Nil

Exit Load Nil

Generally Within 1 business day for Specified RBI locations


and additional 3 Business Days for Non-RBI locations.
Redemption Cheques Issued
Same day Redemption Facility (refer to Key Information
Memorandam).

Minimum Redemption Amt. Rs. 5000/-

Systematic Investment Plan Not Available

Systematic Withdrawal Plan Not Available

Recurring Expenses

Investment Mangmt. Exp. -

Other Recurring Expenses -

First Rs.100 Cr - 2.25%, Next Rs.300 Cr - 2.00%, Next


Total
Rs.300 Cr - 1.75%, Over Rs.700 Cr - 1.50%.

ICICI Prudential Income Plan

Investment Philosophy

ICICI Prudential Income Plan is a debt fund that invests entirely in both short and long
term debt securities of the Government and corporate sector. The objective is to earn a
rate of interest that commensurates with long term deployment in debt markets that
generates income for investors. The fund intends to minimize risks from liquidity, credit
and interest rates in a balanced manner.

Date Period NAV (Rs) Income Plan Benchmark


Return Index Return
30-Apr-08 23.53
30-Apr-07 Last 1 year 21.58 9.01% 7.96%
29-Apr-05 Last 3 years 19.72 6.05% 5.26%
30-Apr-03 Last 5 years 18.38 5.05% 4.50%

58
9-Jul-98 Since Inception 10.00 9.11% ----

Performance

12.00%

10.00%

8.00%
Income Plan

6.00%
Crisil Composite Bond
Fund Index
4.00%

2.00%

0.00%
2003-04 2004-05 2005-06 2006-07 2007-08

YEAR 2003-04 2004-05 2005-06 2006-07 2007-08


Income Plan 9.05% 0.25% 3.29% 5.28% 9.93%
Crisil Composite 8.80% 0.18% 3.30% 3.73% 8.20%

Key Features ICICI Prudential Income Plan

Type Open-ended Debt Fund

Debt Securities upto 75% & Money Market &


Investment Pattern
Cash upto 25%

To generate income through investments in a


basket of debt instruments of various maturities
Investment Objective
with a view to maximize income while maintaining
the optimum balance of yield, safety and liquidity.

Growth/Growth-AEP (Appreciation & Regular)


Options
and Dividend (Quarterly & Half Yearly)

Dividend Reinvestment with Half Yearly


Default Option
frequency.

Rs.5,000 (plus in multiples of Re. 1) / Rs.25,000


Application Amount
for AEP

Min. Additional Investment Rs.500/- and in multiples thereof

Entry Load Nil

59
(i) For investment of less than or equal to Rs. 10
Lakhs : (a) 1% of applicable NAV if the amount
sought to be redeemed or switched out is
invested upto 6 months from the date of
allotment.(b) 0.5% of applicable NAV if the
amount sought to be redeemed or switched out is
Exit Load
invested for more than 6 months but upto 1 year
from the date of allotment.(c) Nil if the amount
sought to be redeemed or switched out is
invested for more than 1 year from the date of
allotment.(ii) For investment above Rs. 10 Lakhs :
Nil

Generally Within 1 business day for Specified RBI


Redemption Cheques Issued locations and additional 3 Business Days for Non-
RBI locations

Minimum Redemption Amt. Rs. 500/-

Monthly: Minimum Rs. 1000 + 5 post-dated


Systematic Investment Plan
cheques for a minimum of Rs. 1000 each.

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 0.75%

Total 2.25%

ICICI Prudential Monthly Income Plan

Investment Philosophy

ICICI Prudential Monthly Income Plan is a conservatively managed fund that invests
predominantly in debt securities. It invests with the view of generating regular income
from debt securities. To this basic portfolio, it adds on a very limited equity exposure
(max 15%) such that the risk-adjusted returns are better. The intent is to provide the
benefit of equity returns to the portfolio, without adding on significant risk. The portfolio
is managed with the objective of stability of income.

60
Date Period NAV (Rs) Monthly Benchmark
Income Plan Index Return
30-Apr-08 20.83
30-Apr-07 Last 1 year 19.09 9.10% 11.23%
29-Apr-05 Last 3 years 15.47 10.40% 10.28%
30-Apr-03 Last 5 years 12.87 10.10% 9.79%
10-Nov-00 Since Inception 10.00 10.32% ----

Performance

20.00%
18.00%
16.00%
14.00%
12.00%
Monthly Income Plan
10.00%
MIP Blended Index
8.00%
6.00%
4.00%
2.00%
0.00%
2003-04 2004-05 2005-06 2006-07 2007-08

YEAR 2003-04 2004-05 2005-06 2006-07 2007-08


MIP 13.26% 7.21% 14.55% 6.33% 8.47%
MIP Blended 18.37% 2.49% 11.23% 5.50% 11.12%

Key Features ICICI Prudential Monthly Income Plan

Type Open-ended Income Fund with no assured returns

Debt Securities, money market instruments,securitised


Investment Pattern debt and Cash upto 85%, Equity and equity related
securities 15%.

To generate regular income through investments in fixed


income securities and also to generate long term capital
Investment Objective
appreciation by investing a portion in equity and equity
related instruments.

Options Dividend (Monthly, Quarterly, Half Annually) and


Cumulative. Automatic Encashment Plan (AEP) also

61
offered.

Default Option Dividend Reinvestment (Monthly).

Cumulative - Rs. 5,000; Dividend & AEP - 25,000 (plus


Application Amount
multiples of Re.1).

Min. Additional Investment Rs.500/- and in multiples thereof under each option

Entry Load Nil

Any purchase transaction less than Or upto Rs.10 lakhs


Exit Load - 0.50% if exit within 6 months;Any purchase transaction
of above Rs. 10 lakhs : Nil.

Generally Within 1 business day for Specified RBI


Redemption Cheques Issued locations and additional 3 Business Days for Non-RBI
locations

Minimum Redemption Amt. Rs. 500/-

Dividend & AEP Option - Monthly and Cumulative


Systematic Investment Plan (Without AEP) Option - Monthly : Minimum Rs 1,000 + 5
postdated cheques for a minimum of Rs. 1,000 each.

Systematic Withdrawal Plan Minimum of Rs.500/- and Multiples thereof

Recurring Expenses

Investment Mangmt. Exp. 1.25%

Other Recurring Expenses 1.00%

Total 2.25%

62
Kotak Mutual Fund
Products
Think Investments. Think
Kotak.

KOTAK 30
(Open Ended Equity Scheme)

A large cap diversified scheme, which invests in companies with a medium to long-term
view. The scheme follows a bottom-up approach to stock selection. The fund has
predominantly invested into blue chip large market capitalization companies. Also small
portion of the funds is invested in medium capitalization companies, which have the
potential to become blue chip companies of tomorrow. Thus the investment strategy is to

63
take balanced exposure across sectors while maintaining less than 30% exposure to mid-
cap stocks.

Performance as on April 30, 2008

Period Kotak 30* Return Benchmark Index


Return
Last 1 year 32.92 26.30%
Last 3 years 44.21% 39.46%
Last 5 years 51.26% 40.76%
Since Allotment 26.76% 20.97%

60.00%

50.00%
40.00%
Kotak 30
30.00%
S&P CNX Nifty
20.00%
10.00%

0.00%
1Yr 3 Yr 5 Yr Since
Allotment
(Dec 29,
1998)

• Investment Objective
To generate capital appreciation from a portfolio equity related securities. The portfolio will
generally comprise of equity & equity related instruments of around 30 companies which may go
upto 39 companies.
• Investment Pattern • Benchmark Index
A portfolio of predominantly equity and equity S&P CNX Nifty.
related securities. Security of around 30
companies which may go upto 39 companies.

64
• Investment Horizon • Estimated Recurring Expenses
1 - 3 years. 2.50%.
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- At the Discretion of Trustees
Investment.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak 30
Additional : Rs.1000/-
Systematic : Rs.1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units Transaction day + 3 working days.
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: For exit within 6 months from the date of
allotment of units for investments of less
For "all direct" applications received by AMC than Rs. 5 crores: 1%
i.e. applications received through internet
facility offered (www.kotakmutual.com), on For exit after 6 months upto 1 year from the
application forms that are not routed through date of allotment of units for investments of
any distributor/agent/broker and submitted to less than Rs. 5 crores: 0.50%
AMC office or collection centre / investment
service centre. Where investments is made by Fund of
Funds as defined under SEBI Regulations:
Where the purchase amount/switch in amount Nil
is equal to or more than Rs. 5 crores
vi) Where the switch in is from any other Where units are allotted upon reinvestment
scheme apart from point iv and v above to an of Dividends: Nil
Equity/Balanced/Equity FOF Scheme for
investments equal to or more than Rs. 5 crores
Cases not covered above: Nil

KOTAK Opportunities

Open –Ended Growth Scheme

Kotak Opportunities is a diversified equity scheme, with a flexible investing style. It will
invest in sectors, which the Fund Manager believes would outperform others in the short

65
to medium-term. By virtue of its flexible investment pattern, the fund is uniquely
positioned to increase concentration sectors which look promising. As markets evolve
and grow, new opportunities for growth keep emerging. Kotak Opportunities would
endeavour to capture these opportunities to generate wealth for its investors.

Performance as on April 30, 2008

Period Kotak Opportunity Benchmark Index


Return Return
Last 1 year 40.52% 24.88%
Last 3 years 44.72% 35.68%
Since Inception 47.86% 35.46%

60.00%

50.00%

40.00%
Kotak Opportunity
30.00%
S&P CNX 500
20.00%

10.00%

0.00%
1Yr 3 Yr Since
Allotment (Sep
09, 2004)

66
KOTAK MID-CAP
• Investment Objective
To generate capital appreciation from a diversified portfolio of equity & equity related
instruments.
• Investment Pattern • Benchmark Index
Equity & Equity related securities : 65% - S & P CNX 500
95%
Debt & Money Market Instruments : 5% -
35%
• Investment Horizon • Estimated Recurring Expenses
1 - 3 Years. 2.50%.
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- At the Discretion of Trustees
Investment.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak Opportunities
Additional : Rs.1000/-
Systematic : Rs.1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units. Transaction day + 3 working days
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: For exit within 6 months from the date of
allotment of units for investments of less than
For "all direct" applications received by Rs. 5 crores: 1%
AMC i.e. applications received through
internet facility offered For exit after 6 months upto 1 year from the
(www.kotakmutual.com), on application date of allotment of units for investments of
forms that are not routed through any less than Rs. 5 crores: 0.50%
distributor/agent/broker and submitted to
AMC office or collection centre / Where investments is made by Fund of
investment service centre. Funds as defined under SEBI Regulations:
Nil
Where the purchase amount/switch in
amount is equal to or more than Rs. 5 Where units are allotted upon reinvestment of
crores Dividends: Nil
Where the switch in is from any other
scheme apart from point iv and v above
to an Equity/Balanced/Equity FOF Cases not covered above: Nil
Scheme for investments equal to or more
than Rs. 5 crores

67
Open –Ended Equity Growth Scheme

The key focus of the fund is to identify potential stocks that are likely and invest in mid-
cap companies that will become tomorrow's large-caps. The essence is to 'spot them
young and watch them grow'. It endeavors to take advantage of the successive waves of
opportunity provided by a transitioning economy. The portfolio would be diversified
across sectors, with adequate flexibility to move within sectors.

Performance as on April 30, 2008

Period Kotak MID-CAP Benchmark CNX


Return Mid-Cap Return
Last 1 year 7.88% 33.44%
Last 3 years 29.36% 34.61%
Since Inception 27.86% 30.97%

40.00%
35.00%
30.00%
25.00%
KOTAK MID-CAP
20.00%
CNX MID-CAP
15.00%
10.00%
5.00%
0.00%
1Yr 3Yr Since
Allotment (Feb
24, 2005)

68
• Investment Objective
To generate capital appreciation from a diversified portfolio of equity & equity related instruments.
• Investment Pattern • Benchmark Index
Equity & Equity related securities : 65% - 95% CNX Midcap.
Debt & Money Market instruments : 5% - 35%
• Investment Horizon • Estimated Recurring Expenses
1 - 3 years. 2.50%.
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- At the Discretion of Trustees
Investment.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak Mid-Cap
Additional : Rs.1000/-
Systematic : Rs.1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units. Transaction day + 3 working days
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: For exit within 6 months from the date of
allotment of units for investments of less
For "all direct" applications received by AMC than Rs. 5 crores: 1%
i.e. applications received through internet
facility offered (www.kotakmutual.com), on For exit after 6 months upto 1 year from the
application forms that are not routed through date of allotment of units for investments of
any distributor/agent/broker and submitted to less than Rs. 5 crores: 0.50%
AMC office or collection centre / investment
service centre. Where investments is made by Fund of
Funds as defined under SEBI Regulations:
Where the purchase amount/switch in amount Nil
is equal to or more than Rs. 5 crores
Where units are allotted upon reinvestment
Where the switch in is from any other scheme of Dividends: Nil
apart from point iv and v above to an
Equity/Balanced/Equity FOF Scheme for
investments equal to or more than Rs. 5 crores Cases not covered above: Nil

69
KOTAK Tax-Saver
(Open-Ended Equity Linked Savings Scheme)

Kotak Tax saver offers the investor the dual advantage of potential capital appreciation as
well as tax savings (as applicable)The portfolio offers a diversified mix across various
sectors. As it is a close ended architecture, the investor has to compulsorily lock in ones
fund for 3 years.

Performance as on April 30, 2008

Period Kotak Tax- Saver Benchmark S&P


Return CNX 500 Return
Last 1 year 19.14% 24.88%
Since Inception 26.27% 29.36%

35.00%

30.00%

25.00%

20.00% KOTAK TAX SAVER


15.00% S&P CNX 500

10.00%

5.00%

0.00%
1Yr Since Allotment (Nov
23, 2005)

70
• Investment Objective
To generate capital appreciation from a diversified portfolio of equity & equity related securities
and enable investors to avail the income tax rebate,
as permitted from time to time.
• Investment Pattern • Benchmark Index
Equity & Equity related securities : 80% - 100% S & P CNX 500
Debt & Money Market instruments : 0% - 20%
• Investment Horizon • Estimated Recurring Expenses
3 yrs & above 2.50%.
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- At the Discretion of Trustees
Investment.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial: Rs 500 and in mulitiples of 500... Kotak Tax-Saver
Additional: Rs 500 and in mulitiples of 500.
Systematic: Rs 500 and in multiples of 500.
• Minimum Redemption Size • Payout Schedule
Rs. 1000 or all units if the amount is less than Transaction day + 3 working days
Rs. 1000/-
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: Exit Load is not applicable for Kotak Tax Saver
Scheme.
Where the purchase amount/switch in amount
is equal to or more than Rs. 5 crores

Where the switch in is from any other scheme


apart from point iv and v above to an
Equity/Balanced/Equity FOF Scheme for
investments equal to or more than Rs. 5 crores

Where units are allotted upon reinvestment of


Dividends.

Cases not covered above:2.25%.

71
KOTAK MNC
Open Ended Equity Scheme

A scheme diversified across sectors that invest in Multinational companies having


business in India. The scheme follows a bottom-up approach to stock selection and the
investment strategy is to make aggressive allocation across select sectors. The investment
focus is on companies that have good governance, strong brands, market leadership and
strong parentage.

Performance as on April 30, 2008

Period Kotak MNC Benchmark BSE Sensex


Return S&P CNX
Nifty Return
Last 1 year 1.25% 26.30% 24.55%
Last 3 year 18.88% 39.46% 41.04%
Last 5 year 37.34% 40.76% 42.30%
Since Inception 17.29% 17.26% 17.52%

45.00%
40.00%
35.00%
30.00% KOTAK MNC
25.00%
S&P CNX Nifty
20.00%
15.00% BSE Sensex
10.00%
5.00%
0.00%
1Yr 3Yr 5Yr Since
Allotment
(Apr 04,
2000)

72
• Investment Objective
To generate capital appreciation from a portfolio of predominantly equity and equity related
securities issued by multinational companies.
• Investment Pattern • Benchmark Index
Equity & Equity related securities : 60% - 100% BSE Sensex & S& P CNX Nifty.

Debt & Money Market securities : 0% - 40%


• Investment Horizon • Estimated Recurring Expenses
More than 1 Year 2.50%.
• Investment Options • Dividend Frenquency
Dividend Payout, Dividend Re-Investment. At the Discretion of Trustees
• Minimum Investments • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak MNC
Additional : Rs.1000/-
Systematic : Rs.1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- T+3
• Cut for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: For exit within 6 months from the date of
allotment of units for investments of less
For "all direct" applications received by AMC than Rs. 5 crores: 1%
i.e. applications received through internet
facility offered (www.kotakmutual.com), on For exit after 6 months upto 1 year from the
application forms that are not routed through date of allotment of units for investments of
any distributor/agent/broker and submitted to less than Rs. 5 crores: 0.50%
AMC office or collection centre / investment
service centre. Where investments is made by Fund of
Funds as defined under SEBI Regulations:
Where the purchase amount/switch in amount Nil
is equal to or more than Rs. 5 crores
Where units are allotted upon reinvestment
Where the switch in is from any other scheme of Dividends: Nil
apart from point iv and v above to an
Equity/Balanced/Equity FOF Scheme for Cases not covered above: Nil
investments equal to or more than Rs. 5 crores

73
KOTAK Bond

Open Ended Debt Scheme

The Kotak Bond is a pure debt scheme, with a diversified portfolio, comprising of
government, PSU and corporate bonds and offers two plans: Deposit Plan & Regular
Plan. Kotak Bond aims to generate reasonable returns at the same time reduce risk by
investing in corporate bonds with credit rating not below AA. Thus the fund has invested
in a variety of debt and money market instruments of various maturities while
maintaining an average duration of 12-18 months in current market situation.

Performance as on April 30, 2008

Period Deposit Plan Regular Plan Crisil


Composite
Bond Index
Last 1 year 7.95% 9.55% 7.96%
Last 3 year 5.77% 6.96% 5.29%
Last 5 year 5.18% 6.15% 4.50%
Since Inception 8.65% 9.52% NA

12.00%

10.00%
KOTAK BOND Deposit
8.00% Plan
Regular Plan
6.00%

4.00% Crisil Composite Bond


Index
2.00%

0.00%
1Yr 3Yr 5Yr Since
Allotment
(Nov 25,
1999)

74
• Investment Objective
The Investment Objective of the scheme is to create a portfolio of debt and money market
instruments of different maturities so as to spread the risk across a wide maturity horizon
& different kinds of issuers in the debt markets.
• Investment Horizon • Estimated Recurring Expenses
Kotak Bond Deposit & Regular Plan: 1 to 2
Kotak Bond Deposit : 2.25%.
years.
Kotak Bond Regular: 1.65%.
Kotak Bond Short Term Plan: 1 month &
Kotak Bond Short Term Plan: 1.50%.
above.
• Plan
Kotak Bond Deposit & Regular Plan: Deposit, Regular.
• Investment Options • Dividend Frenquency
Kotak Bond Deposit: Growth, Dividend Kotak Bond Deposit Plan: Quarterly -
Payout, Dividend Reinvestment. 20th of Mar/Jun/Sep/Dec.
Kotak Bond Regular: Growth, Bonus, Kotak Bond Regular Plan: Quarterly -
Dividend Payout, Dividend Reinvestment... 20th of Mar/Jun/Sep/Dec
Kotak Bond Short Term Plan: Growth & Kotak Bond Regular Plan: Annual -
Dividend Reinvestment. 12th of March.
Kotak Bond Short Term Plan: Monthly
- 12th of month.
• Cheques / DD to be drawn in
• Minimum Investment
favour of
Initial: Kotak Bond / Short Term Plan
Kotak Bond Deposit: Rs. 5000/-
Kotak Bond Regular: Rs. 500000/-
Kotak Bond Short Term: Rs. 5000/-
Additional : Rs. 1000/-
Systematic : Rs. 1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units. Transaction day + 1 working day.
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
Nil For Kotak Deposit Bond Plan :
For redemptions/switchouts within 6
months: 0.50%
For redemptions/switchouts after 6
months : Nil

For Kotak Bond Regular Plan : Nil


For Kotak Bond Short Term : Nil

75
KOTAK Gilt
(Open Ended Dedicated Gilt Scheme)

Kotak Gilt is a scheme that allows the retail investor to invest in the otherwise wholesale
government securities market. Kotak Gilt invests in government bonds and treasury bills,
giving you a zero credit risk investment option. It recognizes that for you, safety is prime,
giving you the liquidity of a savings account with attractive returns. Kotak Gilt scheme
offers several plans to choose from:
Savings Plan:Ideal if you are a short-term investor, this plan invests in a portfolio of
securities with Weighted Average Maturity of less than four years.

Performance as on April 30, 2008


Period KOTAK GILT ISEC SIBEX
SAVINGS Return

Last 1 year 7.18% 8.56%


Last 3 year 5.93% 6.83%
Last 5 year 5.40% 5.93%
Since Inception 7.43% NA

9.00%
8.00%
7.00%
6.00%
5.00% KOTAK GILT SAVINGS
4.00% ISEC SIBEX
3.00%
2.00%
1.00%
0.00%
1Yr 3Yr 5Yr Since
Allotment
(Dec 29,
1998)

76
• Investment Objective
To generate risk free returns through investments in sovereign securities issued by
the Central Govt and/or State Govts and/or reverse repose in such securities.
• Investment Pattern • Benchmark Index
Kotak Gilt Savings Plan: Portfolio of Kotak Gilt Savings Plan: I-Sec Si-
securities will have a Weighted Average Bex.
Maturity of upto 4 years. Kotak Gilt Investment Plan: I-Sec
Kotak Gilt Investment Plan: here will be Composite Index
no restriction on maturity of securities.
• Investment Horizon • Estimated Recurring Expenses
Kotak Gilt Savings Plan: 6 months &
above.
1.65%
Kotak Gilt Investment Plan: More than 1
year.
• Plan
Kotak Gilt Investment Plan : Regular, Providend fund & Trust
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- Kotak Gilt Savings Plan: Monthly -
Investment. 12th of month / Annual
Kotak Gilt Investment Plan:
Quarterly - 20th of Mar/Jun/Sep/Dec.
• Cheques / DD to be drawn in
• Minimum Investment
favour of
Initial : Rs. 5000/- Kotak Gilt Savings / Kotak Gilt
Additional : Rs. 1000/- Investment.
Systematic : Rs. 1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units Transaction day + 1 working day.
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
Nil Exit Load: 1.00% if redeemed within
1 year.

77
KOTAK Flexi Debt
Open Ended Debt Scheme

Kotak Flexi Debt is an income scheme and seeks to maximize returns through active
management of a portfolio of Debt and money market securities. It invests dynamically
across asset classes, maturity spectrum and across the yield curve in order to capitalize on
trading opportunities. The scheme has invested in top rated quality assets and has
relatively lower risk/volatility profile as the mark to market component is relatively low.
It is ideal for investors with medium term investment outlook who want their portfolio to
be managed smartly.
Performance as on April 30, 2008
Period KOTAK FLETI DEBT CRISIL Composite Bond
Return Index
Last 1 year 8.59% 7.96%
Last 3 year 7.47% 5.29%
Since Inception 7.37% 5.26%

10.00%
9.00%
8.00%
7.00%
6.00%
KOTAK FLEXI DEBT
5.00%
CRISIL Composite Index
4.00%
3.00%
2.00%
1.00%
0.00%
1Yr 3Yr Since Allotment
(Dec 06, 2004)

78
• Investment Objective
To maximize returns through an active management of a portfolio of debt and money
market securities.
• Investment Pattern • Benchmark Index
Debt instruments with maturity more than one CRISIL Composite Bond Fund Index.
year : 0% - 95%
D debt & money market instruments with
maturity less than one year :
5% - 100 %
• Investment Horizon • Estimated Recurring Expenses
7 days. 2.25%
• Investment Options • Dividend Frenquency
Kotak Flexi Debt Regular Plan: Dividend Daily.
Payout, Dividend Reinvestment & Growth Weekly - Monday
Kotak Flexi Debt Institutional Plan: Dividend Quarterly - 20th of Mar/Jun/Sep/Dec.
Reinvestment & Growth.
• Cheques / DD to be drawn in
• Minimum Investment
favour of
Initial: Kotak Flexi Debt Regular Plan : Kotak Flexi Debt
Rs. 5000/- & Rs. 100000/- under Daily Dividend
Reinvestment option,
Kotak Flexi Debt Institutional Plan : Rs.
10000000/-
Additional : Rs. 1000/-
Systematic : Rs. 1000/-
• Plan
Regular, Institutional.
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units Transaction day + 1 working day.
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
Nil if redeemed within 7 days from date of
allotment of units : 0.10%

Kotak Income Plus


(Open Ended Debt Scheme)

79
Kotak Income Plus invests 80% - 100% in debt and money market instruments and 0 -
20% in equity related instruments. The scheme endeavors to provide safety of a debt fund
with superior returns of equity product. To ensure safety of a debt fund the scheme
invests in top rated debt instruments thereby ensuring good credit quality and liquidity.

Performance as on April 30, 2008

Period KOTAK INCOME Crisil MIP Blended


PLUS Return Index
Last 1 year 8.27% 11.23%
Last 3 year 9.27% 10.31%
Since Inception 8.32% 8.08

12.00%

10.00%

8.00%
KOTAK INCOME PLUS
6.00%
Crisil MIP Blended Index
4.00%
2.00%

0.00%
1Yr 3Yr Since
Allotment
(Dec 02,
2003)

• Investment Objective
To enhance returns over a portfolio of debt instruments with a moderate exposure in equity and
equity related instruments.
• Investment Pattern • Benchmark Index

80
Debt & Money Market Instruments: 0% - 100% CRISIL MIP Blended Index.
Equity & Equity Related Securities: 0% - 20%.
• Investment Horizon • Estimated Recurring Expenses
More thanes 1 year. 2.25%
• Investment Options • Dividend Frenquency
Growth, Dividend Payout, Dividend Re- Monthly - 12th of every month
Investment. Quarterly - 20th of Mar/Jun/Sep/Dec.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak Income Plus
Additional : Rs. 1000/-
Systematic : Rs. 1000/-
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units Transaction day + 1 working day.
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
Nil For investments less than or equal to Rs. 25
Lacs: 1% if redeemed within 1 year.
For investment above Rs.25 lacs : Nil

KOTAK Balance
Open Ended Balanced Scheme

Kotak Balance seeks to exploit the capital appreciation of equity and the stable returns of
debt. By investing a substantial amount in debt and money market instruments, the
scheme aims to minimize the risk that arises out of even the most carefully picked equity
stocks. The scheme usually has an exposure of about 50% to 60% on equity and the rest
in debt instruments. A combination that in our opinion gives you a perfect balance
between stability and growth.

Performance as on April 30, 2008

81
Period KOTAK BALANCE Crisil Balanced Fund
Return Index

Last 1 year 23.48% 20.91%


Last 3 year 30.80% 25.98%
Last 5 year 36.57% 26.38%
Since Inception 21.69% NA

40.00%
35.00%
30.00%
25.00% K OTAK B A LA NCE
20.00%
Cris il B alanced Fund
15.00%
Index
10.00%
5.00%
0.00%
1Yr 3Y r 5Yr S inc e
Allotm ent
(Nov 25,
1999)

• Investment Objective
To achieve growth by investing in equity & equity related instruments, balanced with income
generation by investing in debt & money market instruments.
• Investment Pattern • Benchmark Index
Equity and Equity related securities : 51% - CRISIL Balanced Fund Index.
100%

82
Debt & Money Market instruments : 0% - 49%
• Investment Horizon • Estimated Recurring Expenses
More than 1year. 2.50%
• Investment Options • Dividend Frenquency
Dividend Payout & Dividend Re-Investment... Half Yearly - 25th Mar/Sep.
• Minimum Investment • Cheques / DD to be drawn in favour of
Initial : Rs. 5000/- Kotak Balance
Additional : Rs. 1000
Systematic : 1000
• Minimum Redemption Size • Payout Schedule
Rs. 1000/- or 100 units Transaction day + 3 working days
• Cut off for Transactions
3 PM
• Entry Load • Exit Load
No entry load shall be charged on: For exit within 6 months from the date of
allotment of units for investments of less
than Rs. 5 crores: 1%
Where the purchase amount/switch in amount
is equal to or more than Rs. 5 crores For exit after 6 months upto 1 year from the
date of allotment of units for investments of
less than Rs. 5 crores: 0.50%
Where the switch in is from any other scheme
apart from point iv and v above to an Where investments is made by Fund of
Equity/Balanced/Equity FOF Scheme for Funds as defined under SEBI Regulations:
investments equal to or more than Rs. 5 crores Nil

Where units are allotted upon reinvestment of Where units are allotted upon reinvestment
Dividends. of Dividends: Nil

Cases not covered above: 2.25%. Cases not covered above: Nil

Research Methodology

83
Under Methodology, we would study the following-

• Objective of the study


• Assumptions taken
• Hypothesis taken up
• Research Framework
• Methods used under this study
• Collection of data

Let us deal with them one by one.

Objectives of the Study

84
• To obtain a general understanding of the marketing strategies adopted
by Mutual Fund Industry.

• To understand the problem faced by the existing clients and find ways
to solve their queries at your level.

• To study the market potential of ICICI Prudential Mutual Fund and


Kotak Mutual Fund.

• To study the response of clients, so as to make a comparative study


and also to study the preferred scheme and there investment time and
money.

• To give proper suggestion or recommendation to the company so that


they can overcome from their weakness and can increase there
number of clients and services.

Assumptions

85
1. The time frame of all marketing strategies and Public Relations
procedures is fairly long and they are not implemented for short term
selling only.

2. We consider that Mutual Fund is the best option for investment to get
maximum profit in long term period.

3. Only young person are interested in investing their money in equity


related scheme whereas others are interested in investing in Debt and
Balanced Funds.

4. It is taken into consideration that there exists a positive correlation


between the various strategies and schemes of the company.

5. ICICI Prudential and KOTAK Mahindra is a renowned name in the

mutual fund sector. At times it is the name or the goodwill that sells
rather than the actual product features.

Hypothesis taken up

86
1. The marketing strategies and public relations practices of ICICI
Prudential Mutual Fund and KOTAK Mutual Fund have a direct
bearing with the perception of the products or service in a consumer’s
mind.

2. The risk in investing in equity related schemes and debt related


schemes have same risk and both are affected by market fluctuation.

3. People age around 20-30 invest their money in equity funds and for

long term whereas people age more than 40 like to invest their money
in Debt funds.

4. People like to invest money in ICICI PRUDENTIAL Mutual Fund


rather than KOTAK Mutual Fund.

Research framework

87
The study involved an analysis of the marketing strategies and public relations practices
of a leading newspaper daily. As the thesis project tried to establish a relationship
between the marketing strategies. Public relations practices and their consequences in
terms of profitability the framework for the research was chosen to be EXPLORATORY
in nature.

Exploratory research is that part of the overall market research, which is used to discover
something new. Normally in any case there can be a number of opportunities or possible
problems and it is impractical to study each of them. Exploratory research in such a case
is very useful to find out the most likely alternatives. These alternatives are then turned
into hypothesis.

Hypotheses are tentative and logical answers to questions that serve as guides for most
research projects.

The various means of going about or executing exploratory research are


• Survey of knowledgeable persons
• Case study

This thesis report is largely based on Survey of knowledgeable persons. The Case study
method could not be applied to a very great extent due to the intricacies involved and its
role was limited.

Methods used under this study

88
1. SURVEY OF KNOWLEDGEABLE PERSON

This pertains to the collection of data from a primary source. People in an


organization are strategically placed at different levels in the hierarchy. All
persons who have any association, whatsoever, with marketing of a product are
reliable sources of information. These people may be either executions of the
company or related with the product but not on the company rolls.

• DEPTH INTERVIEW

A larger part of the information was collected using this method. Although there
was a proper formal questionnaire for a few top officials, the interview with
executives of the company was a more flexible one. This helped in obtaining facts
and data that would not have been obtained otherwise.

However the success of this technique depends majorly on:

• Selection of the executive


• His knowledge
• His liberties and constraints pertaining to his position in the organizational
hierarchy.

Collection of Data

89
There are several way of collecting the appropriate data which after considerably in
context of moneys costs, time and other resources at the disposal of the researcher.

The data is collected of two type namely Primary data and Secondary data for this study.

PRIMARY DATA

Lucky enough to be a part of Mahindra & Mahindra Finance, myself it was easy to meet
a lot of number of employees of the organization from various departments. I have
collected data by using these techniques of collecting of data.

• By observation
• Through personal interview
• Through telephone interview
• By questionnaire

I have collected Primary data by using these techniques which helped me in making this
project complete and reliable. By using observation method I observed people perception
about the mutual fund products and about the AMCs, I have also used personal interview
and telephone interview to know about the views of people about mutual fund.

The technique of questionnaire for collecting data was very useful and clear I have
written some questions and asked people to fill the questionnaire to know there
perception and views about the AMCs and Mutual Fund.

SECONDARY DATA

90
Secondary data means data that are already available i.e. they refer to the data which have
already been collected and analyzed by someone else. Probably the quickest and most
economical way of finding possible hypothesis to take advantage of others works and
utilizes earlier efforts. Secondary data gives one an already built platform to work on. A
large volume of basic research is reported in professional and trade journals and these
sources are maintained in public libraries, newspapers, company libraries and
government documents. Truly speaking, this method is most convenient for students and
is also the most economical. Constraints of cost time and also overall research tools and
resources make this method most dependable.

While doing this project report on comparison study on ICICI Prudential and KOTAK
Mutual Fund the secondary data was collected from:

• INTERNET

1. www.google.com
2. www.icicipruamc.com
3. www.kotakmutual.com
4. www.amfiindia.com
5. www.mutualfund.com

• MAGAZINES & NEWSPAPERS

1. BUSINESS TODAY
2. INDIA TODAY
3. TIMES OF INDIA
4. HINDUSTAN TIMES

RESULTS AND FINDINGS

91
1. From the survey conducted we came to know that most of the customers
gave more importance to service compared to other factors.

2. Equity opportunities, tax savings, are the funds, which are most
preferable.

3. Majority of the customers were self-influenced to purchase the funds


which get maximum returns.

4. Most of the customers prefer PRU ICICI Mutual Funds, mainly for its
brand name, compared to others.

5. From the survey conducted on the types of funds selected for the
purchase of mutual funds most of them are willing to invest in balanced
funds.

6. It concluded that most of the customers are willing to invest in banks and
others.

Customer Preference of following attributes in investing money

92
• Investment
• Saving for future
• Risk cover
• Tax saving

ATTRIBUTES FIRST SECOND THIRD FORTH TOTAL


INVESTMENT 72 84 216 228 600
SAVING FOR FUTURE 156 240 120 84 600
RISK COVER 204 180 96 120 600
TAX SAVING 168 96 168 168 600
TOTAL 600 600 600 600 G.T.=2400

300

250

200 INVESTMENT
SAVING FOR FUTURE
150
RISK COVER
100 TAX SAVING

50

0
FIRST SECOND THIRD FORTH

MAXIMUM INVESTMENT MADE BY THE AGE GROUP

93
AGE GROUP EQUITY MUTUAL FUND DEBT

20-30 70% 25% 5%


30-40 35% 45% 20%
40-50 10% 20% 70%

80%
70%

60%
50% EQUITY
40% MUTUAL FUND
30% DEBT

20%

10%
0%
AGE 20-30 AGE 30-40 AGE 40-50

PREFERENCE OF THE AMC

94
AMC SERVICE RETURN PRODUCT RANGE

ICICI 45% 57% 52%


KOTAK 55% 43% 48%

60%

50%

40%
ICICI
30%
KOTAK
20%

10%

0%
SERVICE RETURN PRODUCT
RANGE

95
WHICH INVESTMENT CARRIES LOW RISK?

OPTION EQUITY MUTUAL FUND DEBT

Risk involved 12% 31% 57%

Response of Respondent

60%

50%

40%
Response of
30%
Respondent
20%
10%

0%
Share Mutual Debt
Market Fund

From the above chart it is clear that most of the respondent believe that debt
is less risky where as mutual fund have moderate risk but and equity market
is more riskey.

96
CONCLUSION

97
CONSLUSION

• The study which I conducted on the analysis of marketing strategy and public
relations of ICICI PRUDENTIAL AND KOTAK MUTUAL FUND has been a
great experience.

• As the objective was to examine the marketing and public relations departments
of the leading Mutual Fund AMCs, the entire report has been an effort to do just
that. The insight obtained has been helpful in understanding what happens in the
industry.

• The Indian Mutual Fund industry which was new to the country is now coming of
age with the entry of new Asset Management Companies entering in the market
and relaxed regulations providing a conductive environment for launching new
products and services.

• Due to intense competition a wide range of services and products at the disposal
of the customer, these AMCs are now rethinking their Marketing and Public
Relations so as to increase their market shares. Today these Asset Management
Company are launching new products and schemes to attract the customers to
increase the number of clients.

• It was very difficult to know about the customer preference about the Asset
Management Company because there are a number of AMCs in the field and they
are providing a large number of product range and schemes, some of them are

98
providing good service, some are providing good returns and some are providing
extra facilities.

• ICICI Prudential and KOTAK Mutual Fund these have the brand name in
managing the funds and providing good return to the customers and have a large
number of mutual fund schemes and launching a new mutual fund scheme as
demanding by the market to provide the good return.

• KOTAK Mutual Fund has a product name KOTAK BOND REGULAR


(GROWTH) which won the Lipper Fund Award India – April 2006, ICRA
ONLINE MFR1 – Dec 2005, CNBC India Mutual Fund of the year award 2004
and CRISIL best fund award 2003.

• KOTAK Mutual Fund house won many awards like NDTV BUSINESS
LEADERSHIP AWARD 2006, LIPPER FUND AWARDS INDIA 2006 and
OUTLOOK MONEY BEST WEALTH CREATOR DEBT 2003.

• KOTAK Mutual Fund has a large amount to manage and has around 35 Schemes
and has over 4 lakh investors and has branches in around 53 cities in India.

• ICICI Prudential Mutual fund is a joint venture between ICICI Bank & Prudential
Plc and it has easy accessibility due to strong distribution network consist many
branches.

• More stress on marketing campaign and sales promotion activities to enhance the
swales and providing smart services all over the country.

• Maximum returns through various Mutual Fund investment plan.

99
LIMITATIONS

100
LIMITATIONS

 The study was done in Gurgaon and NCR only, so it may not reflect

the total marketing conditions in the other cities.

 As the respondents are very busy with their business, they are not that
forthcoming to reveal the truth intimately.

 There is a lack of awareness of Mutual Fund Industry so it takes lot of


time to convince people to invest.

 There is no proper assurance of getting right information from people


because they hide the information due to the competition and other
secondary source might not be updated.

 Most of the people give wrong information from their side such as
wrong phone number, their income group, purpose of saving etc.

 The response of the customer could be subjected to bias.

 Analysis is based on the information provided by the customers.

 As the survey is pertained to specific time period we can not say that
these conclusions holds good to the future.

101
RECOMMENDATION

102
RECOMMENDATION

1. Sales personnel have to be thoroughly trained so as to give better


explanation before the prospective clients.

2. Servicing features by the company such as redemption, and commission


disbursement have to be improved so as to maintain goodwill among the
exiting clients.

3. The company has to maintain better long-term relationship with the


customers.

4. Drastic measures have to be taken immediately for improvement of


advertising all kind media.

5. It is found out from the survey that most of the respondents give priority
to the service and risk factors. Therefore the firm should concentrate on
better services and interacting with the customers as well as investors.

6. Company should consider the present competition market and should act
according to the customer needs while launching a new fund.

7. No doubt ICICI signed more standard and safety needs, but at the same
time it is the responsibility of the company to cooperate with the
distributors and their channels in serving the customers, once the
customer is dissatisfied with service oriented, there are chances he/she
may shift to other companies.

103
8. Some customers have complained about the lack of interaction and
service.

9. It is better for the company to advertise about the funds regarding its
unique features in comparison with other similar funds. This will help
more customers to know about the funds in remote corners of the country
also.

10. It is better if the company advertises and arranges the campaigns


regarding the price and affordability as it is low, when compared to other
companies.

11.Concerned personnel should be arranged to receive the customers at the


workshop so as to avoid the “no immediate response at workshop”.

12.Marketing campaigns should be organized in the areas distant from the


cited.

13.They can gain more customers if they adopt the new and modern
management techniques and methods in marketing customer care, which
increases the interest in the investors mind.

14.The distributors can open their sub-outlets in important corners in and


around the city for the people to know about the fund.

15.It is better, if the company create rural awareness of the ICICI mutual
funds.

104
BIBLIOGRAPHY

105
BIBLIOGRAPHY

• PHILIP KOTLER “MARKETING MANAGEMENT”


• C.R.KOTHARI “RESEARCH METHODOLOGY
• K.ASHWATHAPA “HUMAN RESOURCES MANAGEMENT”
• STEPHEN ROBINS “ORGANIZATION BEHAVIOR”
• ICICI PRUDENTIAL MUTUAL FUND PRODUCT MODULE
• KOTAK MUTUAL FUND PRODUCT MODULE

• www.amfiindia.com
• www.icicipruamc.com
• www.kotakmutual.com
• www.sebi.com
• www.mutualfundsindia.com
• www.google.com

106
Questionnaire

 Name………….

 Age Group
a. 20-30 b. 30-40 c. 40-50 d. Above 50

 Gender
a. Male b. Female

 Status
a. Single b. Married

 Occupation……………

 Annual Gross Income


a. < 100000 b. 100000-500000
c. 500000-1000000 d. Above 1000000

 Address Phone No
……… ………..
……… ………..

 Where do you invest your money?


a. Stock b. Mutual Funds c. Bank d. Other

107
 How do you invest your money?
a. On regular basis b. On Lump-sum basis

 Are you happy with your current returns?


a. Yes b. No

 What benefits influence you to invest?


a. Tax benefits b. High returns
c. Fixed returns d. Safe investment

 What is the optimum investment period?

a. 1-3 years b. 3-5 years


c. 5-10 years d. Below 1 year

 Are you well aware about Mutual Funds?

a. Yes b. No

 If No Why-
a. Mutual funds are not properly promoted
b. Customers are not educated about
c. New to the markets
d. Less no of advisors

108
 What are the main advantages of Mutual Funds over other
products?
a. Low risk b. Higher returns
c. Liquidity d. Professional management

 What do you think the main disadvantages of Mutual Funds?


a. Less awareness b. Very risky
c. No assured returns d. Govt. support

 As a customer you believe which carries more value?


a. Service b. Credibility

 As a customer you believe which carries more risk?


a. Equity b. Debt c. Mutual Funds

 Rate the following AMCs on the basis of following attributes?


a. Best-3 b. Good-2 c. Average-1

Attributes ICICI KOTAK SBI RELIANCE


Service
Returns
Credibility

109