A

SUMMER INTERNSHIP REPORT

ON

MUTUAL FUND SIMPLIFIED AN

INVESTOR AWARENESS INITIATIVE
AT
ICICI SECURITIES SADAR HUB
NAGPUR BRANCH

UNDER THE GUIDANCE OF:

SUBMITTED BY:
Mr.Vinit Karmalekar
Amol S Mohbiya
(ICICI SECURITIES)
RCOEM NAGPUR

INDEX
Sr No

Title

INTRODUCTION

COMPANY PROFILE

MUTUAL FUND

4
5
6
7
8
9

Page No

INTRODUCTION
There are a lot of investment avenues available today in the
financial market for an investor with an investable surplus. He can
invest in Bank Deposits, Corporate Debentures, and Bonds where there
is low risk but low return. He may invest in Mutual of companies where
the risk is high and the returns are also proportionately high. The
recent trends in the Mutual Market have shown that an average retail
investor always lost with periodic bearish tends. People began opting
for portfolio managers with expertise in Mutual markets who would
invest on their behalf. Thus we had wealth management services
provided by many institutions. However they proved too costly for a
small investor. These investors have found a good shelter with the
mutual funds.
Like most developed and developing countries the mutual fund
cult has been catching on in India. The reasons for this interesting
occurrence are:
Mutual funds make it easy and less costly for investors to satisfy
their need for capital growth, income and/or income preservation.
Mutual fund brings the benefits of diversification and money
management to the individual investor, providing an Opportunity for
financial success that was once available only to a select few.

COMPANY PROFILE
ICICI Securities Ltd is an integrated securities firm offering a wide
range of services including investment banking, institutional broking,
retail broking, private wealth management, and financial product
distribution.
ICICI Securities sees its role as 'Creating Informed Access to
the Wealth of the Nation' for its diversified set of client that include
corporate, financial institutions, high net-worth individuals and retail
investors.
Headquartered in Mumbai, ICICI Securities operates out of 66
cities and towns in India and global offices in Singapore and New York.
ICICI Securities Inc., the step-down wholly owned US
subsidiary of the company is a member of the Financial Industry
Regulatory Authority (FINRA) / Securities Investors Protection
Corporation (SIPC). ICICI Securities Inc. activities include Dealing in
Securities and Corporate Advisory Services in the United States.
ICICI Securities Inc. is also registered with the Monetary Authority
of Singapore (MAS) and operates a branch office in Singapore.

VISION
To be the leading provider of financial services in India and a major global
bank.

MISSION
We will leverage our people, technology, speed and financial capital to:

Be the banker of first choice for our customers by delivering high quality,
world-class products and services.

Expand the frontiers of our business globally.

Play a proactive role in the full realization of Indias potential.

Maintain a healthy financial profile and diversify our earnings across

businesses and geographies.

Maintain high standards of governance and ethics.

Contribute positively to the various countries and markets in which we

operate.

Create value for our stakeholders.

MUTUAL FUND
A mutual fund is nothing more than a collection of Mutual and/or
bonds. You can think of a mutual fund as a company that brings
together a group of people and invests their money in mutual, bonds,
and other securities. Each investor owns shares, which represent a
portion of the holdings of the fund.

You can make money from a mutual fund in three ways

Income is earned from dividends on Mutual and interest on
bonds. A fund pays out. Nearly all income it receives over the
year to fund owners in the form of a distribution.
If the fund sells securities that have increased in price, the fund
have a capital gain. Most funds also pass on these gains to
investors in a distribution.
If fund holdings increase in price but are not sold by the fund
manager, the fund's .Shares increase in price. You can then sell
your mutual fund shares for a profit.
Funds will also usually give you a choice either to receive a
check for distributions or to Reinvest the earnings and get
more shares.

ADVANTAGES OF MUTUAL FUND

Professional Management - The primary advantage of funds (at least
theoretically) is the professional management of your money. Investors purchase
funds because they do not have the time or the expertise to manage their own
portfolio. A mutual fund is a relatively inexpensive way for a small investor to get
a full-time manager to make and monitor investments.

Diversification -

Economies of Scale -

By owning shares in a mutual fund instead of

owning individual Mutual Or bonds, your risk is spread out. The idea
behind diversification is to invest in a large number of assets so that a
loss in any particular investment is minimized by gains in others. In
other words, the more Mutual fund and bonds you own, the less any
one of them can hurt you
Because a mutual fund buys and sells
large amounts of securities at a time, its transaction costs are lower
than you as an individual would pay.

Liquidity - Just like an individual Mutual, a mutual fund allows you

to request that your shares be converted into cash.

Simplicity- Buying a mutual fund is easy.

DISADVANTAGES OF MUTUAL FUND

Professional Management- Did you notice how we qualified
the advantage of professional management with the word
"theoretically"? Many investors debate over whether or not the
so-called professionals are any better than you or I at picking
Mutual. Management is by no means infallible, and, even if the
fund loses money, the manager still takes his/her cut. .

 Costs- Mutual funds don't exist solely to make your life easier-all funds are in it for a Profit. The mutual fund industry is
masterful at burying costs under layers of jargon .Because funds
have small holdings in so many different companies, high returns
from a few Investments often don't make much difference on the
overall return. Dilution is also the result of a successful fund
getting too big. When money pours into funds that have had
strong Success, the manager often has trouble finding a good
investment for all the new money

Taxes- When making decisions about your money, fund

managers don't consider your personal tax situation. For
example, when a fund manager sells a security, a capital-gain
tax is triggered, which affects how profitable the individual is
from the sale. It might have been more advantageous for the
individual to defer the capital gains liability

RISKS INVOLVED IN MUTUAL FUND

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?

Inflation risk
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.

Effect of loss of key professional and inability to adopt

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 all investments involve some form of risk, which
should be evaluated them potential Rewards when an investment is
selected.

Managing 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 Mutual prices of an outstanding, highly profitable
company and a fledgling corporation may be affected.

Interest rate 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 will actually be able to buy

less, not more. Inflation risk also occurs when prices rise faster than
your returns.

Credit risk
The sector offers. Failure or inability to attract/retain such qualified key
personnel may impact the prospects of the companies in the particular
sector in which the fund invests.

Exchange risks
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 risks
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.

Changes in government policy

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.

OBJECTIVE OF THE STUDY

The objective of the research is to study and analyze the
awareness level of investors of mutual funds.
To measure the satisfaction level of investors regarding mutual
fund.
To measure various variables playing in the mind of investors in
terms of investors in terms of safety, liquidity, service, returns
and tax savings.
To get insight knowledge about mutual funds.
To know the mutual funds performance levels in the present
market.
To know the awareness of mutual fund among different groups of
investors.
Finding out ways & means to improve on services by ICICI
Securities.

RESEARCH METHODOLOGY
Aim: To aware the investors and provide information about mutual
fund.
Research Approach:
The project uses facts or information already available an
analysis them to make aware the investor about mutual fund. The
survey has been conducted to study awareness among the investor.
The procedures adopted for obtaining the data is survey
method. In this method the data has been collected by the method of
feedback.

Sample size:
The survey covered a total of 600 respondents out of a total
1000 across the Nagpur branch. This represents 60% coverage
across the Nagpur branch.

Data Collection
Primary data:
The primary data is collected by doing survey and
discussion with customers and taking suggestions.
Secondary data:
The information regarding project has been collected from
available printed and published materials.

Total sample size across the Nagpur

600
1000

sample size
Total size

Total sample

250

contable
Non contactable

350

sample size

60

Intrested
Not Intrested

190

SUGGESTIONS

There is high potential market. For mutual fund investors but this
market need
to bed explored as investors are still hesitated to invest their money
in mutual fund.

In city, investor has inadequate knowledge of mutual fund, so

proper marketing of various scheme is required, company should
arrange more and more seminar about mutual fund.

Provide complete information relating to mutual funds

CONCLUSION
The awareness level of investors is low who are interested in dealing in
mutual fund

Most of investors are totally unaware about this investment.

Very less people knows about the service of ICICI.
Past image of mutual fund is not good.
Most of the investors want to invest in public co.s fund just because

of safety purpose.
Most of the investors want to safer side in investment.
Most of the investors dont know about the mutual funds so they
want advisory services from ICICI which could provide them whole
information about the market situation of mutual fund.