DECLARATION

I, Mr. Abdul Rahman Abdullaie hereby declare that Dissertation entitled Mutual funds with
special reference to ICICI prudential with reference to “(ICICI PRUDENTIAL ,MUTUAL
FND,)” prepared by me under the supervision of (PROF. SHYLAJA. H.N), School of
Management Studies, REVA University,

I am submitting this Dissertation project in partial fulfillment of the university regulations for the
award of degree of Bachelor of Business Administration during the academic year 2017-18,
School of Management Studies, REVA University, Bengaluru.

I have undergone Dissertation project for a period of twelve weeks. I further declare that this
project is based on the original study undertaken by me and has not been submitted for the award
of any degree/diploma from any other University/Institution.

Signature of the Student

Place: Bangalore. Student Name: Abdul Rahman Abdullaie
Date: April 24,2018 SRN: R15BM001
 ACKNOWLEDGEMENT

This is a matter of pleasure for me to acknowledge my deep sense of gratitude to REVA

UNIVERSITY and School of Management Studies for giving me an opportunity to explore my
abilities via this Dissertation.

I would like to express my sincere gratitude to my guide Prof. Shylaja H N for her valuable
guidance and advice in completing this organization study.

Let me take this opportunity to thank School Director, Dr. Shubha A for the whole hearted
support extended to me throughout the conduct of the study. Madam gave me lot of inputs and
suggestions to bring out the best in me. The encouraging words that have been extended were
great boost for the completion of this work.

I would like to record my sincere appreciation and gratitude towards all the officials and
employees of ICICI Prudential Mutual Fund without whose kind assistance, my Dissertation
would not have succeeded.

I am also very thankful and grateful towards my seniors, colleagues and authorities of School of
Management Studies, REVA UNIVERSITY for their support, encouragement, and valuable
suggestions for the completion of this organization study.

Last but not the least, I would like to express my sincere thanks to my family members, friends
for their immense support and best wishes throughout the study and the preparation of this
report.

Abdul Rahman Abdullaie

 TABLE OF CONTENTS

CHAPTER NO CONTENTS PAGES

 Introduction to mutual fund
 Concept of mutual fund
 Early history
 Mutual funds today
 Meaning of mutual fund
 Why select a mutual fund? 1-16
CHAPTER I
 Characteristics of the best mutual funds
 Benefits / advantages of mutual funds
 Disadvantages of mutual funds
 Using porter's 5 forces to analyze mutual fund
industry porter's five forces

 Mutual fund industry in India

 Structure of mutual funds in India
 Types of mutual funds schemes in India
 Growth of mutual funds in India
 ICICI prudential mutual fund
CHAPTER II  Board of directors 17-32
 Management Team
 Board of committees
 Awards
 2.10 Mission & Vision
 Objectives of the ICICI
 Swat analysis of ICICI
  Research methodology
 Statement of the problem
 Title of the study
 Need for the study
 Objectives of the study
CHAPTER III  Scope of the study 33-44
 Limitations
 Research design
 Financial and statistical tools for measurement
 Tools of analysis
 Literature review
 ICICI prudential FMCG fund - direct plan
 ICICI prudential child care plan - study plan -
direct plan
 ICICI prudential dynamic bond - direct plan
portfolio details
 ICICI prudential balanced fund - direct plan
 ICICI prudential balanced fund direct growth
 Analysis based on the standard deviation of the

CHATPER IV fund 45-80

 Analysis according to average fund return and
average market return
 Analysis according to beta
 Analysis according to Sharpe– ratio
 Analysis according to Jensen(Alpha)
 Analysis according to Treynor ratio
 Findings

CHAPTER V  Suggestion 81-84

 Conclusion
 Bibliography
 Annexure
 LIST OF TABLES

SERIAL NO. TABLE NAME PAGES

Tab. 1 board of ICICI prudential 28

Portfolio Details: ICICI Prudential FMCG Fud- 45

Tab. 2
Direct Plan

Tab. 3 Scheme Features 45

Tab. 4 portfolio holdings 46

Tab. 5 Sectoral Allocation 47

Tab. 6 Tools of Analysis of Fund Market 47

Portfolio Details of ICICI prudential child care 49

Tab. 7
plan - study plan - direct plan
Tab. 8 Scheme Features 49

Tab. 9 portfolio holdings 49

Tab. 10 Sectoral Allocation 51
Tab. 11 Tools of Analysis of Fund Market 51
Portfolio Details Of ICICI prudential dynamic 53
Tab. 12
bond - direct plan
Tab. 13 Scheme Features 53

Tab. 14 portfolio holdings 53

Tab. 15 Sectoral Allocation 54

Tab. 16 Tools of Analysis of Fund Market 58

Portfolio Details of ICICI prudential balanced 60
Tab. 17
fund - direct plan
Tab. 18 Scheme Features 60

Tab. 19 portfolio holdings 60

Tab. 20 Sectoral Allocation 64

Tab. 21 Tools of Analysis of Fund Market 65

Portfolio Details of ICICI prudential balanced 67

Tab. 22
fund direct growth
Tab. 23 Scheme Features 67

Tab. 24 portfolio holdings 67

Tab. 25 Sectoral Allocation 71

Tab. 26 Tools of Analysis of Fund Market 72

Tab. 27 Standard Deviation of The Fund & Market 74

Average Fund Return and Average Market 75
Tab. 28
Return
Tab. 29 Analysis According Beta 76

Tab. 30 Analysis According Sharpe– Ratio 77

Tab. 31 Analysis According Jenson 78

Tab. 32 Analysis According Treynor Ratio 79

 LIST OF FIGURES/CHARTS

SERIAL
FIGURES/ CHARTS NAME PAGE
NO.

1 Showing Concept of mutual fund 2

2 Showing The risk- return matrix 6

Showing Porter’s Five Forces Model for Indian Mutual

3 14
Fund Industry

4 Showing Structure of mutual fund in India 18

5 Showing Types of Mutual Funds In India 19

Showing The Graph Indicates the Growth of Mutual

6 24
Funds in India
7 Showing Standard Deviation of The Fund & Market 74
Showing Average Fund Return and Average Market 75
8 Return

9 Showing Analysis According Beta 76

10 Showing Analysis According Sharpe– Ratio 77

11 Showing Analysis According Jenson 78
12 Showing Analysis According Treynor Ratio 79
 EXECUTIVE SUMMARY

Mutual Fund is an investment tool that allows small investors access to a well-diversified
portfolio of equities, bonds and other securities or a mutual fund is a common pool of money into
which investors place their contributions that are to be invested in accordance with a stated
objective. The ownership of the fund is thus joint or “mutual”; the fund belongs to all investors.

The first introduction of a mutual fund in India occurred in 1963, when the Government of
India launched Unit Trust of India (UTI). UTI enjoyed a monopoly in the Indian mutual fund
market until 1987, when a host of other government-controlled Indian financial companies
established their own funds, including State Bank of India, Canara Bank and by Punjab National
Bank.

Statement of The Problem:

Mutual funds are the avenues for common investors to reap the benefit of share market
performance. Investing directly by investors are fraught with highest level of risk & uncertainty.
Retail investors do not actively participate in share market. Therefore there is a necessity to
create awareness of the utility of investing in mutual funds schemes to enjoy a return.

The present study aims to answer a few questions in this respect. What is the performance of
mutual funds in context to their risk and return incurred during the study period? Whether the
mutual funds have outperformed to the market or not. What is the position of the mutual fund
performance among the different schemes? Which type of mutual funds are performing well and
which are below the expectation level? What are the basic motives for investing in mutual fund
in India? What is the impact of regulatory norms on the mutual funds’ performance? These are
some questions which the present study attempts to answer.

OBJECTIVES OF THE STUDY

The present study is concerned with the following objectives:
1. To identify systematic risk
2. To identify return variance
3. To know about the selection parameters for mutual fund
4. To evaluate the overall performance of mutual funds
 5. To give an idea of the types of schemes available
Findings

1. The highest value of standard deviation is of ICICI Prudential FMCG Fund - Direct Plan
which is 2.04%whereas the lowest value is ICICI prudential balanced fund direct growth
which is 0.6%.This means ICICI Prudential FMCG Fund - Direct Plan has more amount of
risk and the ICICI prudential balanced fund direct growth has least amount of risk involved.

2. Beta value of greater than one indicating that they are more risk category. The remaining 5
schemes have registered Beta of less than one which indicates that they are of low risk
category. Lowest risk is for ICICI Prudential Child Care Plan - Study Plan which is 0.57%
and highest risk is for ICICI prudential balanced fund direct growth which is 0.91%

3. That the Sharpe ratio. the highest value of Sharpe Ratio is of ICICI Prudential Balanced Fund
- Direct Plan which is 12.5% whereas the lowest value is ICICI Prudential Child Care Plan -
Study Plan Direct Plan which is 7.75% High value of Sharpe indicates that the fund is
performing well in respect to the risk associated with it. On the other hand the lowest amount
of Sharpe Ratio shows that the fund is not performing well in response to the risk involved
herein

4. Jensen measure revealed that all the 5 schemes were showed positive alpha which indicated
superior performance of the schemes over their bench marks. The highest value of Alpha is
ICICI Prudential Balanced Fund - Direct Plan which is 13. On the other hand, the lowest
value of Alpha is ICICI Prudential FMCG Fund - Direct Plan which is 3%.It means that
ICICI Prudential FMCG Fund - Direct Plan has been outperforming.

5. The highest value of Treynor is ICICI Prudential Dynamic Bond - Direct Plan which is 0.25
whereas the lowest value is ICICI Prudential FMCG Fund - Direct Plan which is 0.13. High
value of Treynor indicates that the fund’s performance in accordance to systematic risk is
high. On the other hand the lowest values can be interpreted that the fund’s performance is
low when calculated in respect of systematic risk
RESEARCH METHODOLOGY:

Research Design

The present research is an attempt to study the performance evaluation of mutual funds in
general in India and ICICI Mutual Fund in particular. The study focus on mutual fund schemes
of Indian companies comprising Equity, Debt and Hybrid Schemes.

This report is based on secondary data, however primary data collection is given more
importance since it is overheating factor in attitude studies which here I was not able to collect it.

The methodology adopted in this study is explained below:

A. Literature Survey: I have used research articles, newspapers, magazines related to business
& finance apart from websites.

B. Type of research: The research is quantitative & descriptive in nature. Quantitative research
is one that talks about the quantity of the subject to be researched and Descriptive research is one
that describes things as exists in present.

Recommendation:

Most of the people are interested on some Assured and Additional benefits and some people are
interested in minimum premium bonus company has formulate those policies which are mostly
preferred by customers and prospects.

Rural people are not interested and they are not understanding about ICICI prudential. So if the
company on rural area and to make awareness of them then they can assure their life benefit.

Company should make their products and service flexible for the convenience of their customer
and the companies should now try to identify the gap between current level of customer service
and customer expectations.

The investor before making investment should carefully only the risk and return profile of the
selected fund

The risk of the funds needs to carefully analyze before making any investment on the fund
Disclosure of Risk: The funds should disclose the level of risk associated with investment in the
fund return in offer documents and in comparative levels of returns and risk in the annual reports
for the sake of prospective and existing investor