ACCURATE INSTITUTE

TECHNOLOGY, PLOT NO.

NOIDA- 201306 (UP)

OF MANAGEMENT &
49, KNOWLEDGE PARK 3, GREATER

Synopsis
On
Mutual Fund Simplified

Submitted By
Name: Kunjan Jayant
Roll No: DM1517049
Batch : 2015-17

Industry Guide

Faculty Guide

Name: Mr. Anuj Aggraval

Name: Prof. Pradeep Verma

Designation: Supervisor

Designation: PGP Head

Company Name: ICICI Securities

Introduction

INTRODUCTION TO ICICI SECURITIES.

The ICICI Securities is mainly dealing in the security market. The security market of India is
very widely spreaded and still it is growing at a good rate. The major institutions which are
involved in the security market are performing the role of the intermediaries for Buyers and
Sellers in the market. The service provided by the mediator is easy transaction between two
parties. Before 1998 the security market was dealing in physical format. There were share
brokers who performed the job of the intermediaries between the two parties. The main markets
were the stock exchanges situated in different parts of the country. The brokers were purchasing
and selling the securities on behalf of the investors.
The stock broking industry is a service-oriented industry where brokers act as agents for
investors when a security is bought or sold and are compensated with a commission. Investors
would not hesitate to switch to alternative brokerage houses if they do not obtain satisfaction.
Providing quality service and hence customer satisfaction should thus be recognized as a key
strategy and a crucial element of long-run success and profitability for stock broking businesses.
ICICI Securities Limited provides various products and services to corporate, financial
institutions, and retail investors INDIA and internationally. It provides corporate finance services
to corporations, financial institutions, financial sponsors, and government, which include equity
capital market products, such as initial public offerings (IPO), further public offerings, rights
offerings, convertible offerings, qualified institutional placements, non-convertible debentures,
buyback, delisting, and open offers and international offerings for unlisted and listed entities. The
company also offers mergers and acquisitions advisory services; and private equity advisor.

ICICI Securities - Private Wealth Management

At ICICI Securities, we base our services on a simple yet powerful philosophy we believe in
building long term relationships and partnering with them in legacies for generations to follow.

ICICI Securities - Retail

ICICI Securities empowers over 2 million Indians to seamlessly access the capital market with
ICICI Direct.com, an award winning and pioneering online broking platform.

STOCK EXCHANGES
NATIONAL STOCK EXCHANGE {N.S.E.}:
NSE was set up in 1993 at Delhi to encourage stock exchange reforms through the system
modernization and competition. The NSE was following the screen based trading system. The
system through which the NSE is trading is known as the NEAT [National Exchange for
Automated Trading.]. It allows members across the country to trade simultaneously and with full
efficiency. As on December 1996 there were around 1200 companies traded on NSE. Out of
1200 companies only 535 companies were listed and rest were permitted companies. The market
capitalization as on January was 4.2 trillion. The total turnover of the NSE as on January was
around Rs. 2,16,000 crores. This was more than nine times than the turnover of 1995, which was
Rs. 27,000 crores.

BOMBAY STOCK EXCHANGE {B.S.E.}:The BSE is situated at Mumbai more popularly known as the DALAL STREET. As the
Mumbai is the trading capital of the nation, most of the companies prefer to list their shares in
the BSE. The BSE had an extra age over the NSE in number of the companies listed. As on
December 1996, only 1200 companies were traded on the NSE where as on BSE on the same
day 5999 companies were traded. But since November 1995 trading volumes on NSE is more
than the BSE. The BSE is also a major party who has contributed to the development of security
market in India.

ICICI DIRECT

ICICI direct is an online trading and investment platform on ICICI Securities, the largest stock
broker firm in India providing a wide range of investment options to the retail and institutional
customers. ICICI Securities is part of ICICI Group, India's top financial service provider offering
banking and other financial services.
ICICI Securities (I-Sec) is the top equity house in India with over 20 lakh customers. ICICI
Direct.com is the most visited investment portal in India and by NRI's living across countries. It
is one website which provides options to invest in over 20 financial products including Equity,
Derivatives, Currency Futures, IPO, Mutual Funds, ETF, Fixed Deposits, Loans, Tax Services,
New Pension Systems and Insurance.
ICICI direct also provide current stock market information which includes stock prices, news,
market research reports, stocks tips, events, IPO News and company results. Its 'Centre for
Financial Learning' initiative offers number of online and classroom programs for investors. The
3-in-1 account, which includes ICICI Bank Account, ICICI Direct Trading Account and ICICI
Demat Account, is the best offering for retail investors in India as it provides easiest way to
invest in stock market and other financial instruments. The customers can visit any of the over
1500 ICICI Bank branches to get help on financial products which are sold through ICICI direct.
ICICI Direct.com is the largest equity house in the country providing end-to-end solutions
(including web- based services) through the largest non-banking distribution channel so as to
fulfill all the diverse needs of retail and corporate customers. ICICI Direct.com has a dominant
position in its core segments of its operations Corporate Finance including Equity Capital
Markets Advisory Services, Institutional Equities, Retail and Financial Product Distribution.
With a full-service portfolio, a roster of blue-chip clients and performance second to none, we
have a formidable reputation within the industry. Today ICICI Securities is among the leading
Financial Institutions both on the institutional as well as retail side .ICICI Direct.com, the step
down wholly owned US subsidiary of the company is a member of the National Association of
Securities Dealers, Inc. (NASD). As a result of this membership, ICICI Securities Inc. can
engage in permitted activities in the U.S. securities markets. These activities include Dealing in
Securities and Corporate Advisory Services in the United States and providing research and
investment advice to US investors. ICICI Direct.com is also registered with the Financial
Services Authority, UK (FSA) and the Monetary Authority of Singapore (MAS).

ICICI DIRECT TRADING PLATFORMS

ICICI Direct offers 2 trading platforms to its customers:

1. Share Trading Account (Website Based Trading)

Website based online Share Trading Account by ICICI Direct is primarily for buying and
selling of stocks The ICICI Direct website allows Cash Trading, Margin Trading, Margin
PLUS Trading, Spot Trading, Buy Today Sell Tomorrow, IPO Investment, Mutual Fund
Investment etc.
ICICI Direct.com website is the primary Investment vehicle of ICICI Limited.

2. Trade Racer (Trading Terminal)

Trade Racer is a power packed Trading platform which provides an investor with Live
streaming quotes & Research Calls, integrated fund transfer system along with multiple
watch list facility. Investor can also do technical analysis with the help advance charting
tools. Single Order entry page for Equities and Derivatives, Technical Analysis,
Integrated Fund Transfer System, Customized Interface, Intra-day and EOD Charts and
Shortcut keys for faster access to markets are some of the key features of Trade Racer
Terminal.

ICICI DIRECT ADVANTAGES

3-in-1 account integrates your banking, broking and demat accounts. All accounts are
from ICICI and very well integrated. This feature makes ICICI the most interesting
player in online trading facility. There is absolutely no manual interfere require. This is

truly online trading environment.

Unlike most of the online trading companies in India which require transferring money to
the broker's pool or towards deposits, at ICICI Direct you can manage your own demat
and bank accounts through ICICI Direct.com. Money from selling stock is available in
ICICI bank account as soon as the ICICI Direct receive it.

Investment online in IPOs, Mutual Funds, GOI Bonds, and Postal Savings Schemes all

from one website. General Insurance is also available from ICICI Lombard.
Trading is available in both BSE and NSE.
Low bandwidth website is available for slow internet connection or for trading from

mobile devices.
Through GTC feature, you can place buy and sell limit orders in equity scripts of your
choice; specifying the period for which you want the order instruction to be valid.

ICICI DIRECT DISADVANTAGES

ICICI Direct brokerage is high and not negotiable.

ICICI Direct doesn't offer commodity trading. With ICICI Trading account you cannot
trade at MCX or NCDEX.
With ICICI Direct.com e-Invest account (3-IN-1 concept), the Demat Account has to be
opened with ICICI Bank Ltd as the Depository Participant (DP) and the Bank Account
has to be opened with ICICI Bank Ltd. as the Banker.

ICICI minimum brokerage change is Rs 35 per trade which is very high for traders who
does small trades.

BOARD OF DIRECTORS ICICI Securities Limited.

Ms. Chanda D. Kochhar, Chairperson

Mr. Uday Chitale, Independent Director
Mr. Vinod Kumar Dhall, Independent Director
Ms. Zarin Daruwala
Ms. Shilpa Kumar
Mr. Anup Bagchi, Managing Director & CEO
Mr. Ajay Saraf, Executive Director

ACHEIVEMENTS OF THE COMPANY

Retail

ICICI Direct.com, won the Outlook Money ' Best e- Brokerage Award' for 10th time
in a row in 2014. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009,

2010, 2011, 2012 and 2013.

ICICI Direct won the Franchisor of the year award 2014
ICICI Direct won the BSE - D&B Equity Broking Awards 2014
ICICI Securities won the Award for Outstanding Social Impacts at the Global
Sustainability Leadership Awards 2014 These awards recognize institutions for their
contribution to the society in their domain as well as businesses that deliver products and
services in ways that takes full account of their responsibility towards the communities

they touch.
Ranked 2 at the THOMSON REUTERS STARMINE ANALYST AWARDS 2014 - TOP

BROKERS
ICICI Securities was awarded the "MOST ADMIRED SERVICE PROVIDER IN
FINANCIAL SECTOR" at the BANKING FINANCIAL SERVICES & INSURANCE

AWARDS 2014 presented by ABP News.

ICICI Direct.com won the Mobbys award for the "Best Mobile application in Mobile

Trading".
ICICI Securities Business Partners has been conferred the Franchise India Awards

2013, for being the 'Franchisor of the year' in the Financial Services category.
ICICI Direct.com won the award for Innovation at Banking Frontiers Finnoviti
Awards 2013. The award was conferred on ICICI Direct's for its `Valid Till Cancel
Order' (VTC ) facility, which was awarded amongst the top 3 innovations in BFSI

industry by 'Peer Voting'.

ICICI Securities won the Outlook Smart use Technology E-Retailer of the year 2013

conferred by FIHL in association with HomeShop18.com.

ICICI Direct.com won the 'Stock Broker of the Year' award at the Money Today

FPCIL Awards 2012

ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the

Year' at the Franchise Awards 2012 for the fourth time in a row.
ICICI Securities won the 'BSE IPF D&B Equity Broking Awards 2012' under two
categories:
o Best Equity Broking House - Cash Segment
o Largest E-Broking House

ICICI Securities won the Chief Learning Officer Award from World HRD Congress

for Innovation in learning category.

ICICI Securities won the Grand Jury Award for 'Commendable performance by
National Financial Advisor (Retail) - Online' at the CNBC TV 18 - Financial Advisor

Awards 2011. The award recognizes India's best Financial Advisors.

ICICI Securities Business Partners (Sub Broker channel) won the 'Franchisor of the

Year at the Franchise Awards 2011', third time in a row.

ICICI Securities was the winner of the 'Smart use Technology E-Retailer of the year'
2012 award conferred by Franchise India in association with UTV Bloomberg for the

first time.
ICICI Direct.com, won the Outlook Money ' Best e- Brokerage Award' seventh time

in a row. Previously, the firm won the award in 2004, 2005, 2007, 2008, 2009 and 2010.
ICICI Securities' Business Partners (Sub Broker channel) won the 'Franchisor of the

Year 2011' for the third consecutive year.

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

Finance
Pankaj Pandey, Head- Research - ICICI Direct has won the Zee Business Best Market

Analyst 2010 award in the Equities Fundamental Category

CMO Asia Awards for Excellence in Branding and Marketing 2010:
o Brand Leadership Award (overall)
o 'Campaign of the Year' for the Trade Racer Campaign
o Brand Excellence in Banking and Financial Services for the store format
o Award for Brand Excellence in the Internet Business
Franchisor of the year award 2009
Retail concept of the year awards 2009
Frost and Sullivan 2009 Award for Customer Service Leadership
ICICI Direct, the neighborhood financial superstore won the prestigious Franchise India

`Service Retailer of the Year 2008 award.

ICICI Direct has also won the CNBC AWAAZ 2007 Consumer Award for the Most

Preferred Brand of Financial Advisory Services.

Best Broker - Web 18 Genius of the Web Awards 2007

Institutional

ICICI Securities awarded the Asia money `Best Domestic Equity House' for 2012
Vikash Mantri tops The Wall Street Journal's Asia's Best Analysts survey in the media

sector for 2010

ICICI Securities has awarded as the Best Investment Bank 2008 by Global Finance

Magazine
The Corporate Finance group also was awarded a runner-up Best Merchant Banker by

Outlook Money in 2007.

ICICI Securities topped the Prime Database League Tables 2007 for money raised

through IPOs/FPOs.
The equities team was adjudged the 'Best Indian Brokerage House-2003' by Asia
money.

Technology

ICICI Securities Ltd was awarded the The Indian Merchants Chamber - IT Awards
2015 for the category "End Users of IT" by the Indian Merchants? Chamber under the

BFSI domain.
ICICI Securities recently won the Innovation Award for Oracle Fusion Middleware.
ICICI Securities has consistently demonstrated the best usage of Oracle Tuxedo as an
OLTP engine. These Asia-Pacific awards honor customers for their optimum and

innovative solutions using Oracle Fusion Middleware.

Fairfax Business Media has recognized ICICI Securities as a recipient of CIO 100 Asia

award in 2013.
ICICI Securities has been awarded the NASSCOM IT Innovation Awards 2013.
CIO Masters for Collaboration and Cloud was awarded by Biztech2 (Network 18) in

2013.
ICICI Securities has been conferred by Dataquest in 2012
o Business Technology Excellence award
o Business Technology Innovation award
IDG India has recognized ICICI Securities as a recipient of CIO 100 award in 2009,

2010, 2011 and 2012, four times in a row.

IDG India has conferred the CIO Hall of Fame award in 2012.

EMC Transformers Award was presented for best use of IT to transform business in

2012
CIO Masters for Virtualization was awarded by Biztech2 (Network 18) in 2012
ICICI Securities was the Bloomberg UTV CXO Awards Finalist for Best Utilization of

IT to Transform Business in 2011

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

the Enterprise Awards 2010

ICICI Securities was the NASSCOM CNBC IT User Awards Finalist in 2009 and 2010
Indian Bank's Association Business Technology Awards was presented for Best Online
Trading Platform in 2006 and 2007

LITERATURE REVIEW

A STUDY ON MUTUAL FUND

In few years Mutual Fund has emerged as a tool for ensuring ones financial well being.
Mutual Funds have not only contributed to the India growth story but have also helped
families tap into the success of Indian Industry. As information and awareness is rising more
and more people are enjoying the benefits of investing in Mutual Funds.
The main reason the number of retail mutual fund investors remains small is that nine out of
ten people with incomes in India do not know that mutual funds exist. But once people will
be aware of mutual fund investment opportunities, the number who decide to invest in
mutual funds increases may increase to as many as one in five people. The trick for
converting a person with no knowledge of mutual funds to a new Mutual Fund customer is to
understand which of the potential investors are more likely to buy mutual funds and to use
the right arguments in the sales process that customers will accept as important and relevant
to their decision.
This Project gave me a great learning experience and at the same time it gave me enough
scope to implement my analytical ability. The analysis and advice presented in this Project
Report is based on market research on the awareness of mutual funds among ICICI

customers and preferences of the investors for investment in Mutual Funds. This Report will
help to know about the investors Preferences in Mutual Fund means Are they prefer any
particular Asset Management Company (AMC), Which type of Product they prefer, Which
Option (Growth or Dividend) they prefer or Which Investment Strategy they follow
(Systematic Investment Plan or One time Plan). This Project as a whole can be divided into
two parts.
The first part gives an insight about Mutual Fund and its various aspects, the Company
Profile, Objectives of the study, Research Methodology. One can have a brief knowledge
about Mutual Fund and its basics through the Project. The second part of the Project consists
of data and its analysis collected through survey done on 98 peoples. For the collection of
secondary data I made a questionnaire and surveyed of 98 peoples. The data collected has
been well organized and presented. I hope the research findings and conclusion will be of
use.

MUTUAL FUNDS
DEFINITION
An investment vehicle that is made up of a pool of funds collected from many investors for
the purpose of investing in securities such as stocks, bonds, money market instruments and
similar assets. Mutual funds are operated by money managers, who invest the fund's capital
and attempt to produce capital gains and income for the fund's investors. A mutual fund's
portfolio is structured and maintained to match the investment objectives stated in its
prospectus.

AN INTRODUCTION
A Mutual Fund is an investment tool that allows small investors access to a well-diversified
portfolio of equities, bonds and other securities. Each shareholder participates in the gain or
loss of the fund. Units are issued and can be redeemed as needed. The fund's Net Asset Value
(NAV) is determined each day. The income earned through these investments and the capital
appreciations realized are 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.

HOW DOES A MUTUAL FUND WORK

Mutual funds are financial intermediaries, which collect the savings of investors and invest
them in a large and well-diversified portfolio of securities such as money market instruments,
corporate and government bonds and equity shares of joint stock companies. Mutual funds
are conceived as institutions for providing small investors with avenues of investments in the
capital market. Since small investors generally do not have adequate time, knowledge,
experience and resources for directly accessing the capital market, they have to rely on an
intermediary, which undertakes informed investment decisions and provides consequential
benefits of professional expertise.

TYPE OF MUTUAL FUND SCHEMES

Open Ended Schemes:

An open-end fund is one that is available for subscription all through the year and is not
listed on the stock exchanges. The majority of mutual funds are open-end funds. Investors
have the flexibility to buy or sell any part of their investment at any time at a price linked to
the fund's Net Asset Value.
Close Ended Schemes:
A closed-end fund has a fixed number of shares outstanding and operates for a fixed duration
(generally ranging from 3 to 15 years). The fund would be open for subscription only during
a specified period and there is an even balance of buyers and sellers, so someone would have
to be selling in order for you to be able to buy it. Closed-end funds are also listed on the
stock exchange so it is traded just like other stocks on an exchange or over the counter.
Usually the redemption is also specified which means that they terminate on specified dates
when the investors can redeem their units.

Interval Schemes:
Interval Schemes are that scheme, which combines the features of open-ended and closeended schemes. The units may be traded on the stock exchange or may be open for sale or
redemption during pre- determined intervals at NAV related prices.
Based on their investment objective:

Equity Funds:
Equity schemes endeavor to provide potential for high growth and returns with a moderate to
high risk by investing in shares. Such schemes are either actively or passively (replicate
indices) managed, and are best suited for investors with a long term investment horizon.
These funds invest in equities and equity related instruments. With fluctuating share prices,
such funds show volatile performance, even losses. However, short term fluctuations in the
market, generally smoothens out in the long term, thereby offering higher returns at relatively
lower volatility. At the same time, such funds can yield great capital appreciation as,
historically, equities have outperformed all asset classes in the long term.
Balanced fund:
A mutual fund that buys a combination of common stock, preferred stock, bonds, and shortterm bonds, to provide both income and capital appreciation while avoiding excessive risk.
The purpose of balanced funds (also sometimes called hybrid funds) is to provide investors
with a single mutual fund that combines both growth and income objectives, by investing in
both stocks (for growth) and bonds (for income). Such diversified holdings ensure that these
funds will manage downturns in the stock market without too much of a loss; the flip side, of
course, is that balanced funds will usually increase less than an all-stock fund during a bull
market.

Balanced funds are the ideal mutual funds vehicle for investors who prefer spreading their
risk across various instruments.
Following are balanced funds classes:
i.
ii.

Debt-oriented funds -Investment below 65% in equity.

Equity-oriented funds-Invest at least 65% in equities, remaining in debt

Debt fund:
This fund invests in fixed income instruments such as debentures (bonds), Treasury Bills etc.
Preferred by investors who want steady income and not willing to take much of risk. They
invest only in debt instruments, and are a good option for investors averse to idea of taking
risk associated with equities. Therefore, they invest exclusively in fixed-income instruments
like bonds, debentures, Government of India securities; and money market instruments such
as certificates of deposit (CD), commercial paper (CP) and call money. Put your money into
any of these debt funds depending on your investment horizon and needs.
i.

Liquid funds- These funds invest 100% in money market instruments, a large portion

ii.

being invested in call money market.

Gilt funds ST- They invest 100% of their portfolio in government securities of and T-

iii.

bills.
Floating rate funds - Invest in short-term debt papers. Floaters invest in debt

iv.

instruments which have variable coupon rate.

Arbitrage fund- They generate income through arbitrage opportunities due to mispricing between cash market and derivatives market. Funds are allocated to equities,
and money markets. Higher proportion (around 75%) is put in money markets, in the
absence of arbitrage opportunities.

ADVANTAGES OF INVESTING MUTUAL FUNDS

1. Affordability: As mutual funds are available in units, one can initially opt for a
regular investment plan contributing few hundred rupees per month
2. Professional Management: A mutual fund offers the expertise of professional fund
managers who, with their skills and knowledge, are able to understand market trends
and invest accordingly o Diversification: Rather than investing in one or a few

instruments, a mutual fund invests in a basket of instruments which matches its

investment objective. For instance, in case of an equity diversified fund, the
investment is spread across multiple industries / sectors and companies. As a mutual
fund investor, you are able to access a diversified investment portfolio with a sum of
as little as Rs. 500, which would otherwise not be possible
3. Convenience and Flexibility: Mutual fund operations like purchase, redemptions,
switching between funds of the same fund house, etc. are relatively simple.
Moreover, Mutual funds offer you the flexibility of tailoring your investment
program with facilities like Systematic Investment Plans (SIPs), Systematic Transfer
Plans (STPs) and Systematic Withdrawal Plans (SWPs) explained later.
4. Cost Effectiveness: Economies of scale, achieved by pooling of investors' funds,
lowers the costs of investing for an investor. Such lower costs make a huge impact
cumulatively over longer time horizons.
5. Liquidity: Mutual fund units are highly liquid, since open ended funds may be
redeemed with the Mutual fund on any working day and closed ended funds may be
sold in the market at the prevailing prices. Only tax saving and some close ended
funds have lock in periods.
6. Tax Efficient: Mutual funds offer better tax benefits as compared to many other
investment avenues.
7. Transparency: Mutual Funds are legally bound to disclose their portfolios at
periodical intervals which keep the investor fully informed of where his money has
been invested. Moreover, all the mutual funds are registered with SEBI, a regulatory
body which ensures that the investors' interests are protected.

BENEFITS

OF

MUTUAL

FUNDS

DISADVANTAGES

OF

INVESTING MUTUAL FUNDS:

1. Professional Management- Some funds doesnt perform in neither the market, as
their management is not dynamic enough to explore the available opportunity in the
market, thus many investors debate over whether or not the so-called professionals
are any better than mutual fund or investor himself, for picking up stocks.

2. Costs The biggest source of AMC income, is generally from the entry & exit load
which they charge from an investors, at the time of purchase. The mutual fund
industries are thus charging extra cost under layers of jargon.
3. Dilution - Because funds have small holdings across 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.
4. 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.

OBJECTIVES

The objectives of this study are as follows:-

PRIMARY OBJECTIVE

To create awareness among the customers of ICICI about various MUTUAL FUNDS and

their benefits through the online portal of ICICI.

To understand the concept of mutual fund.
To analyze the growth path of mutual fund sector in India.
To know why one has invested or not invested in preferred Mutual fund.

SECONDARY OBJECTIVE

To get a general feedback from the customers about ICICI Mutual Fund investment and

the online portal.

To conduct survey about Mutual Fund investments from existing customers of ICICI
Securities (Customers who have an ICICI Direct.com account).

To make the customers understand that it is always better to invest or purchase Mutual

Funds online than offline.

To make customer user friendly with the website of ICICI Direct.com.

RESEARCH METHODOLOGY

RESEARCH & METHODOLOGY

This report is based on primary as well secondary data, however primary data collection was
given more importance since it is overhearing factor in attitude studies. One of the most
important users of research methodology is that it helps in identifying the problem, collecting,
analyzing the required information data and providing an alternative solution to the problem .It
also helps in collecting the vital information that is required by the top management to assist
them for the better decision making both day to day decision and critical ones.

DATA SOURCES
Research is based on primary data as well as secondary data. Secondary data can be used only
for the reference. Research has been done by primary data collection, and primary data has been
collected personally. The secondary data has been collected through various journals and
websites.

SAMPLING
1. SAMPLING PROCEDURE
The sample was selected randomly irrespective of them being investors or not or availing
the services or not. It was also collected through personal, by formal and informal talks
and through filling up the questionnaire prepared. The data has been analyzed by using
mathematical/Statistical tool.
2. SAMPLE SIZE
The sample size of my project is limited to 650 people only.
3.

SAMPLE DESIGN
Data has been presented with the help of bar graph, pie charts, line graphs etc.

LIMITATION
Some of the persons were not so responsive. Sample size is limited to 650 people including
students, working people, business man and others. The sample size may not adequately
represent the whole market. Some respondents were reluctant to divulge personal information
which can affect the validity of all responses. The research is confined to a certain part of Delhi
NCR.

RESEARCH DESIGN
A research design is the master plan or model for the conduct of formal investigation and survey.
It is a specification of methods and procedures for acquiring the information needs for solving
the problem. It decides the source of information and methods for gathering the data. A
questionnaire and other forms are tested to use the collection of data. A sampling design is to be
selected. Good research design ensures that the information obtained is relevant to the research
question and that it was collected by objectives. Since research design is simply the framework
of plan for a study, it is used as a guide in collecting and analyzing the data. It is a blueprint that
is followed in completing the research study. My approach to research is descriptive. The major

objective of the descriptive research is to describe something usually market features or

functions.

DATA COLLECTION
Primary data will be collected through feedback form filled by the customer.
Secondary data will be obtained through company sources and other various internet sites.

PROFILE OF THE CUSTOMERS

Customers were the investor who mostly likely to invest in Equity or Fixed deposit or

there were customers who had stopped investing in the market.

Customers mostly prefer investing through online channels as mode of investment.
The customers were already existing customers of ICICI company weather insurance, so
this database was used for cross sealing.

DATA ANALYSIS & INTERPRETATIONS

Following is the data analysis of the questionnaire which were given to basically working
professionals to analysis the pattern and preferences of their investments in last 12 months. This
analysis is done w.r.t to ICICI Direct and its competitors.
Ques. 1 Have you invested in any of the following in the last 12 months?

EQUITY
MUTUAL FUNDS

30%
4%
5%

51%

4%

CORPORATE FIXED
DPOSITS
FUTURE AND
OPTIONS

6%

INSURANCE
NONE OF THESE

Interpretation - From the above stats it can be clarified that most of the people have invested in
Equity and also some of them are invested in mutual funds which means public mainly like to
invest in Equity and Mutual Funds. Peoples invest more in Equities because they get higher
potential returns and less risk.

Ques. 2 What is your preferred mode of investment?

Online 88
Offline 10

6%

MUTUAL FUNDS

EQUITY

52%

0% 10% 20% 30% 40% 50% 60%

Interpretation - From the above stats it can be clarified that most of the people having their
preferred mode of investment in online. Its means peoples are adopting and getting attract
towards the online platform for Trading and Investment

Ques. 3 Have you invested in any of the following through ICICI Direct.com in the last 12
months?

EQUITY
MUTUAL FUNDS

30%
4%
5%

51%

4%

CORPORATE FIXED
DPOSITS
FUTURE AND
OPTIONS

6%

INSURANCE
NONE OF THESE

Interpretation - From the above stats it can be clarified that most of the peoples have invested in
Equity and Mutual funds in Last 12 months. Peoples are Getting Good returns and benefits thats
why they invested more in equities and mutual funds.
Ques. 4 How do you /would you prefer to make your investments in Equity?

13%
31%

56%

ICICI Direct
Other broker
NA

Interpretation -From the above stats it can be clarified that most of the people preferred to make
their investment in Equity its 56% with ICICI Direct.com because the return is high and more of
the liquidity.
Ques. 5 How do you /would you prefer to make your investments in Mutual Funds?

9%

10%

24%

31%

ICICI Direct
Agents

26%

Other Broker
Banks
NA

Interpretation -From the above stats it can be clarified that most of the people want to make
their investment in mutual funds through others brokers but not from the ICICI Direct.com
because ICICI Direct dont give the full services to the customers. They just open the account
and then leave the customers alone.
Ques. 6 How do you /would you prefer to make your investments in Insurance?

13% 10%
31%

ICICI Direct
46%

Agents
Banks
Other Brokers

Interpretation -From the above stats it can be clarified that most of the people want to make
their investment in Insurance through Agents because Agents are trustworthy. They give the good
n fixed returns. Most of the customers are invested in LIC through LIC Agents.
Ques. 7 How do you /would you prefer to make your investments in Corporate Fixed Deposit?

13%
41%
ICICI Direct

26%

Directly with the company

20%

Other Broker

NA

Interpretation -From the above stats it can be clarified that most of the people prefer to make
their investment in Fixed deposits through other brokers because in Fixed deposits have the
assurance that it will give fixed returns and peoples more want to invest in FD because they dont
want to take the risk.
Ques. 8 How do you /would you prefer to make your investments in Debentures / Bonds?

13%
61%

26%

ICICI Direct
Directly with
company
NA

Interpretation -From the above stats it can be clarified that most of the people dont want to
make their investment in Debentures/bonds because customers dont have the knowledge about
the debentures and bonds. They dont have the finance to invest in the debentures and bonds.
Ques. 9 Before the demo, were you aware that you can invest in Mutual Funds?
80%
80%
70%
60%
50%
40%
30%
20%
10%
0%

18%

Yes

No

Interpretation -From the above stats it can be clarified that most of the people around 90%
peoples are already aware about that they can invest in Mutual funds through ICICI Direct.com
because the ICICI Direct tell the customers at the time of when customers open their account
with ICICI Direct.com and also tell them about their online portal and you can invest in mutual
funds directly online through ICICI Direct.com
Ques. 10 If yes, what are the reasons for not investing in Mutual Funds through ICICI
Direct.com?

41% 22%
12% 25%

I am not interested
as I invest other
brokers or
distributors

I need more
knowledge on
Mutual Funds before
I invest

I ned assistance to
invest in MF through
ICICI direct.com

I do not invest in MF

Interpretation -From the above stats it can be clarified that most of the people are not to invest
in the Mutual Funds through ICICI Direct.com and majority is 41%. It is because of the
customers expectations will not meet with the ICICI Direct.com and the customers not have
good relationship with ICICI Direct Relationship Managers
Ques. 11 Which of the following online transactions have you done in the past?

4% 13%
46% 23%
14%

I by movie tickets
online

I look flights or
train tickets online

I buy merchandise
online

I use Internet or
Online Banking

I do not do any
online
transactions

Interpretation -From the above stats it can be clarified that most of the people shifted towards
to online baking and 46% peoples are using online baking for their online transactions. Peoples
are using the best of the online banking and it helps customers in to save their time.

Ques. 12 How often do you transact online in any of the above mentioned transactions?

3%

Monthly

5%

41%

51%

Once in a
quarter
Once in a six
months
Once in a year

Interpretation -From the above stats it can be clarified that most of the people transact online
51% in the monthly basis. Because they have the account with bank and securities and for the
trading they also have to do online trading.
Ques. 13 Which medium of news information and analysis do you use to keep yourself informed
on investment products?

I discuss with my friends, family and or colleagues

17%
I prefer to do my own research
15%

45%

I have a financial advisor or broker or MF distributor who updates

me
23%
I use financial websites for comparisons and news
I read media reports

Interpretation -From the above stats it can be clarified that most of the people are discuss with
their family and friends to keep the information about investment products and it is because the
Family play as the role of trustee like Agent.
Ques. 14 How do you check the performance of all/any of your investments?

I ask my financial advisor

10%
14%
Broker or MF distributor to send me information
21%

29%

I update investment details on a third party portfolio website and

check regularly
26%
My bank provides me the information
Other - SELF

Interpretation -From the above stats it can be clarified that most of the people check the
performance of all of their investments through Financial Advisor Because the Financial Advisor
is the person who have the perfect knowledge about the stock market and having experience in
the stock market. On the other side the broker also play the important role in to provide the
information to customers for their investments
Ques. 15 Would you consider switching your investment relationship to ICICI Direct.com?

65%
70%
60%
50%

42%

40%
30%
20%
10%
0%
Yes

No

Interpretation -From the above stats it can be clarified that most of the people are not to keep
their Investment relationship with ICICI Direct.com because of the past experience of ICICI
direct customers was not good. They do not trade through their Present Account. They do not
have adequate knowledge about Stock market or maybe they are in investment relationship with
other Company.
Ques. 16 Which of the following site features did you find useful in the demo?

10%
19%
21%
22% 28%

Capital Gains
Statement

Ease of purchase or
redemption

Portfolio Monitoring

Personalized research
recommendations
against holdings

Others

Interpretation -From the above stats it can be clarified that the demo which I gave to the
customers of ICICI it is very beneficial for them and they can easily manage their portfolio and it
is easy for customers to easy of purchase and redemption of shares.
Ques. 17 How would you rate the presentation and demonstration by our representative?

25%

15%

55%

5%

Good
Bad
Neutral
Needs
Improvement

Interpretation -From the above stats it can be clarified that most of the people find that the
Presentation and demonstration which Is given by me to the Customers of ICICI Direct was very
good. They understand very well that they can become a user-friendly with the website of ICICI
Direct.com and they also find that it is a good online portal where they can easily do the trading
of shares.

FINDINGS & CONCLUSIONS

FINDINGS

Most of the clients are not aware with concept of mutual fund and its advantages.
Customers past habits of investment is being recognized.

Clients who know about mutual fund are not investing their money into it because of lack

of knowledge about mutual fund.

Customers problems are solved as soon as possible.
Mostly customers want to invest in fixed deposit only.
In Delhi-NCR in the Age Group of 36-40 years were more in numbers. The second most
Investors were in the age group of 41-48 years and the least were in the age group of

below 30 years.
In Delhi-NCR most of the Investors were Graduate or Post Graduate or Retired persons.
In Occupation group most of the Investors were Govt. employees, the second most

Investors were Private employees and the least were associated with Agriculture.
About all the Respondents had a Saving A/c in Bank, 76% Invested in Fixed Deposits,

Only 60% Respondents invested in Equity

Only 47% Respondents were aware about Mutual fund and its operations and 53% were

not.
Among 98 Respondents only 30% had invested in Mutual Fund and 70% did not have
invested in Mutual fund.

SUGGESTIONS& RECOMMENDATIONS
1. The most vital problem spotted is of ignorance. Investors should be made aware of the
benefits. Nobody will invest until and unless he is fully convinced. Investors should be
made to realize that ignorance is no longer bliss and what they are losing by not
investing.
Mutual funds offer a lot of benefit which no other single option could offer. But most of
the people are not even aware of what actually a mutual fund is? They only see it as just
another investment option. So the advisors should try to change their mindsets. The
advisors should target for more and more young investors. Young investors as well as
persons at the height of their career would like to go for advisors due to lack of expertise
and time.
2. Mutual Fund Company needs to give the training of the Individual Financial Advisors
about the Fund/Scheme and its objective, because they are the main source to influence
the investors.

3. Before making any investment Financial Advisors should first Enquire about the risk
tolerance of the investors/customers, their need and time (how long they want to invest).
By considering these three things they can take the customers into consideration.
4. Younger people aged under 35 will be a key new customer group into the future, so
making greater efforts with younger customers who show some interest in investing
should pay off. Customers with graduate level education are easier to sell to and there is a
large untapped market there. To succeed however, advisors must provide sound advice
and high quality.
5. Systematic Investment Plan (SIP) is one the innovative products launched by Assets
Management companies very recently in the industry. SIP is easy for monthly salaried
person as it provides the facility of do the investment in EMI. Though most of the
prospects and potential investors are not aware about the SIP. There is a large scope for
the companies to tap the salaried persons

CONCLUSION
Running a successful Mutual Fund requires complete understanding of the peculiarities of the
Indian Stock Market and also the psyche of the small investors. This study has made an attempt
to understand the financial behavior of Mutual Fund investors in connection with the preferences
of Brand (AMC), Products, and Channels etc. I observed that many of people have fear of
Mutual Fund. They think their money will not be secure in Mutual Fund. They need the
knowledge of Mutual Fund and its related terms. Many of people do not have invested in mutual
fund due to lack of awareness although they have money to invest. As the awareness and income
is growing the number of mutual fund investors are also growing.
Brand plays important role for the investment. People invest in those Companies where they
have faith or they are well known with them. There are many AMCs in Delhi-NCR but only
some are performing well due to Brand awareness. Some AMCs are not performing well
although some of the schemes of them are giving good return because of not awareness about
Brand. Reliance, UTI, SBIMF, ICICI Prudential etc. they are well known Brand, they are

performing well and their Assets Under Management is larger than others whose Brand name are
not well known like Principle etc.
Distribution channels are also important for the investment in mutual fund. Financial Advisors
are the most preferred channel for the investment in mutual fund. They can change investors
mind from one investment option to others. Many of investors directly invest their money
through AMC because they do not have to pay entry load. Only those people invest directly who
know well about mutual fund and its operations and those have time.