PREFERENCE IN MUTUAL FUND AT ICICI PRUDENTIl

2. Mutual funds are the financial
intermediaries which collect funds from
the public and invest them in diversified
portfolio of securities which includes
equity bonds debentures and other
instruments issued by business or
government undertakings.

3. Returns are passed
back to the
investors
Investors pool
their money
with a registered
mutual fund
MUTUAL
FUND
Generates return
on the pooled
investments.
Mutual fund – fund
Manager invests this
amount with securities

4. Financial intermediary which bring a
wide variety of securities within the
research of the most modest of
investors.
-:FRANK REILLY

5. • Mutual fund helps small investors to
participate in securities market indirectly
and this contributes to its spread while
reducing the risk.
• Mutual funds all over the world have
played a very important role in pooling
small savings of individuals and invest
them in proper portfolio.

6. • In UK nearly 80% of investors look into
mutual funds for their investment.
• The Annual growth rate of mutual fund
business in US is 25% in EUROP also
the trend is found to be same.

9. Mutual fund can be classified under two
different categories:
 General classification
Open -Ended schemes
Close – Ended schemes
 Broad classification

10. Basis of Difference Open- Ended fund Close – Ended fund
Opening of fund Subscriptions are Subscriptions are
received by offering units received only for a fixed
or shares on a continuing or limited period
basis.
Withdrawal of fund Investors can withdraw Investors are not allowed
funds to withdraw funds at their
choice.
Maturity period Open- Ended funds have Close- Ended funds have
no fixed maturity period a fixed maturity period
Listing in stock exchange Open – Ended funds are Close – Ended funds are
not listed at the stock usually listed in the stock
exchanges. exchange and Ordinarily
sell at a discounted price

12. Mutual funds in India
• The end of millennium marks 36 years of existence of
mutual funds in this country.
• This ride through these 36 years is not been smooth.
• Investor is still divided.
• While some are for mutual funds others are against it.
• UTI commenced its operations from JULY 1964.
• Finance minister, T.T. Krishnamachari set up the idea of
a unit trust that would be “ open to any person or
institution as we see it is intended to cater to the needs of
individual investors and even among them as possible.

14.  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 history of mutual funds in
india can be broadly divided into four distinct
phases.
• First phase-:1964-87
• Second phase-:1987-93
• Third phase-: 1993-2003
• Fourth phase -: since february 2003

15. Section 2(42a): Under section 2(42a) of the act,
a unit of mutual fund is treated as short term
capital asset if the same is held for less than
12 months.
The units held for more than twelve
months are treated as long term capital asset.

16. Section 10(38): Under section 10(38) of the act,
long term capital gains from transfer of a unit
of mutual fund is exempt from tax if the said
transaction is undertaken after October 1
2008 and the securities transaction taxis paid
to the appropriate authority.
This makes long term capital gains on
equity oriented funds exempt from tax from
assessment year 2009-10.

17. Section 112: Under gains 112 of the act capital
gains not covered by the exemption under
section 10(38) chargeable on transfer of long
term capital on transfer of long term capital
assets are
Resident individual – 20% plus surcharge
Partnership firms– 20% plus surcharge
Foreign companies– 20%

18. AMC : ICICI prudential asset
management company ltd
Set up date : May 1998
Sponsor : ICICI Bank Ltd.
Trustee : ICICI prudential Trust Ltd..
Chair Person : Ms. Chandra Kochhar
Managing Director
and CEO : Mr. Nimesh Shah
Deputy Managing
Director : Mr. Nilesh Shah
Fund Managers : Mr.'s. Naren & Mr. chaitanya Pande

19.  “Debt fund house of the year” by
CNBC TV18-CRISIL
Mutual fund awards-2010.
 “ Seven Star fund of the year” by
ICRU-Fund awards-2010
for ICICI tax plan.
 LIPPER fund awards-2010 to ICICI
prudential dynamic plan for mixed asset INR
flexible.

20. The types of mutual funds in india offered by the
ICICI prudential mutual funds.
The schemes are categorized on the
level of risk and return, higher the risk, the
higher the return.
Potential risk and return is held
minimum in the following ICICI mutual fund
schemes:

21. • ICICI prudential long term floating rate plan.
• ICICI prudential Blended plan.
• ICICI prudential Short Term floater.
• ICICI prudential Short Term plan.
• ICICI prudential GILT fund- Treasury option.
• ICICI prudential Liquid Plan.

23. Need for the study:
• The study aims at studying customer preferences
towards ICICI prudential mutual funds and cultivates
a new taste of investing in mutual funds.
• The researcher felt that there is need to study why
and what investors should choose in for mutual
funds investments in stock markets.
• As many players entering into mutual funds sector it
is high time to developments and mind profile of
prospective investor from time to time.

24.  Physical scope:
• Investor of ICICI pru AMC Ltd Vijayawada.
• Investor preferences about ICICI pru Mutual
Fund Schemes.
• Employees of ICICI pru AMC Ltd
Vijayawada.

25.  Conceptual scope:
• The scope of the study is limited because the study is
restricted to select sample available at the disposal of
researcher to carry out the study.
• This study is helpful to researcher academician and
the organization.
• The academician can understand the practices of
mutual funds industry.
• The academician can observe the investors
exceptions towards mutual funds & the other
schemes offered to them.
• This study will facilitate an understanding on the
trends of mutual fund industry in india.

26. • The main objective of the present study is to study the
customer awareness and their preferences about mutual
funds and ICICI prudential mutual funds in particular.
• The study aims at tracking investors preferences and
priorities towards different types of mutual funds
products.
• To study the investor perception on ICICI prudential
mutual funds.
• To study the investor expectations from ICICI Prudential
mutual funds.
• To study the gap between the investor expectations and

27.  PRIMARY DATA
 SECONDARYDATA

28.  In my study I was used Questionnaire methodology.
 Questionnaire are used primary in making status
studies of current practices and conducting opinion
pools and surveying attitudes.
 The Questionnaire is two types
SUPPLY TYPE
SELECTION TYPE

29. • Secondary data means company profile
• Industrial profile and conceptual background can be
collected from the different sources like internet
company fact sheets brochures etc..,
• The past performance of company and the present
marketing performance with regards to preferences
are required for this study.
• The above data is collected from company fact
sheets and other company records which are give the
preference of customers

30. S no Gender No of Percentage
Respondents
1 Male 70 70
2 Female 30 30
Total 100 100

31. Sales
1st Qtr
2nd Qtr
0
0

32. INTERPREATATIONS:
From the above table it is clear that 70% of
the respondents are male and the
remaining 30% of the respondents are
female. So it can be concluded that
majority of the respondents are male. It
can be represented with the help of pie
chart.

33. s. no Source of awareness Number of respondents Percentage
1 Advertisement 20 20
2 Company executives 40 40
3 Agents 25 25
4 Others 15 15
Total 100 100

34. Sales
advertisment
company executives
agents
others

35. From the above table it is clear that 40% of the respondents came
to know about MF through company’s executives, 25% through
agents, 20% through advertising,15% through others. So the
major sources of awareness for mutual funds were through
company’s executives & agents, and through advertising.
 So the company should concentrate major on its
executives& agents by providing them extra incentives &
commissions with regards to their increase in each lead to the
company in money terms as per their targets .And also the
company should invest more in media publicity as they play a
major role today in every sector, which attracts more people
and in short span of time. . It can be represented with the help
of pie chart .

36. S.NO Amount invested Number of respondents Percentage
1 5,000-10,000 30 30
2 10,000-20,000 25 25
3 20,000-30,000 25 25
4 Above-30,000 20 20
Total 100 100

37. Sales
5000-10000
10000-20000
20000-30000
above-30000

38. From the above table it is clear that among 5,000
to10,000 investment was done by 30% of
respondents and 10,000 to 20,000 was done 25%of
respondents and20,000 to 30,000 was done by 25%
of respondents and above 30%of investment was
done by 20%of respondents So here many of
respondents are interested in investing among 5,000
to10,000 in mutual fund. . It can be represented with
the help of pie chart .

39.  How did you know about Mutual Funds?
Advertisement Company executives
Agents Others
 How much of amount do you invested in MF?
Rs. 5,000-Rs.10,000 Rs.10,000-Rs.20,000
Rs.20,000-Rs.30,000 above Rs.30,000
 What is the major factor do you look forward for investing in Mutual
Funds?
Liquidity Performance
Returns Consistency
 If interested MF, then what type do you prefer?
Open-ended Closed-ended Interval
 If Open ended Schemes what are the reasons for choosing it?
Flexibility Liquidity