An Internship Report submitted in the partial fulfillment of the requirement for the

degree of
B.COM (HONOURS)

UNDER THE GUIDANCE OF: - ………………….

(Co-ordinator)

SUBMITTED BY –

ARMAN ANSARI
Registration no. -
Class- B.Com 3rd Year (Honors)
C.U Roll no-
College Roll no-

SURENDRANATH COLLEGE
1
 ANNEXURE – 1

SUPERVISOR’S CERTIFICATE

This is to inform that Miss Arman Anasari

a student of B.COM (Honors) In Accounting & Finance of Surendranath College
under the university of Calcutta has worked under my supervision and guidance
for the project

Work and prepared a project report with the title “Mutual Fund”.

The project work, which he has submitted is his genuine and original

Work to the best of my knowledge.

(Signature)

Place: Kolkata

Name: Prof.

Date:

Designation - Lecturer

2
 ANNEXURE – 2

STUDENT’S DECLARATION

I hereby declare that the project work with the title “Mutual Fund”

Submitted by me for the fulfillment of the degree B.COM (Honors)

In Accounting & Finance in Business under the University of Calcutta

Is my original work and has not been submitted earlier to any other

University/institute for the fulfillment of the requirement for any other

Course of study.

I also declare that no chapter of this manuscript in whole or part has

been incorporated in this report from any earlier work done by other or

by me. However extracts of any literature which has been used for this

report has been duly acknowledge providing details of such literature

in this preference.

Signature :

Place Name : Kolkata

Registration no :

C.U Roll no. :

College Roll no. :

3
 ACKNOWLEDGEMENT

I would like to express my humble gratitude to the almighty god who

Has always stood next to me in all my difficult times.

I convey my special thanks to SURENDRANATH COLLEGE having admitted me in

the course.

I hereby place my sincere and profound gratitude to my principle

Dr and our commerce department teacher

Prof. along with my other teacher for their valuable guidance,

suggestion, and moral support to do my project work.

I also extended my thankfulness to my beloved parents and friends for their

continuous encouragement at every moment.

4
 CONTENTS

INTRODUCATION............................................................................................................................ 6-7
BACKGROUND OF THE STUDY ......................................................................................................... 8-9
OBJECTIVE OF THE STUDY ........................................................................................................... 9-12
NEEDS OR IMPORTANE OF THE STUDY ....................................................................................... 13-15
LITRATURE REVIEW .................................................................................................................... 15-18
METHOLOGY .............................................................................................................................. 19-20
LIMITATION OF THE STUDY.............................................................................................................. 21
CONCEPTUAL FRAM WORK NATIONAL SENARIO........................................................................... 2-28

(i)NATIONAL SENARIO…………………………………………………………………………………………………………………..22
(ii) INTERNATIONAL SENARIO………………………………………………………………………………………………………….23
DATA ANANYLISIS & PRESENTATION ......................................................................................... 24-37
1.Systematic Investment Plan…………………………………………………………………………………….......................38
PERFORMANCE COMPARISON OF MUTUAL FUNDS OF THREE COMPANIES……………………………….38-49
ICICI Prudential Mutual Fund………………………………………………………………………………………………………38-41
Birla Sun Life Mutual Fund……………………………………………………………………………………………………..….42-45
Kotak Mahindra Mutual Fund……………………………………………………………………………………………………45-49
TAX ADVANTAGE OF MUTUAL FUND……………………………………………………………………………………………..50
CONCLUSIONS&RECOMMENDATION…………………………………………………………………………………………..51
BIBLIOGRAPHY………………………………………………………………………………………………………………………………52
APPENDIX............................................................................................................................................

5
 INTRODUCTION

MUTUAL FUND INDUSTRY

The mutual fund industry in India is one of the emerging industries in India.
Today, the Indian mutual fund industry has 40 players. The number of public
sector players has reduced from 11 to 5. The public sector has gradually receded
into the background, passing on a large chunk of market share to private sector
players.

The Association of Mutual Funds in India (AMFI) is the industry body set up to
facilitate the growth of the Indian mutual fund industry. It plays a pro-active role in
identifying steps that need to be taken to protect investors and promote the mutual
fund sector.

It is noteworthy that AMFI is not a Self-Regulatory Organisation (SRO) and its

recommendations are not binding on the industry participants. By its very nature,
AMFI has an advisor’s or a counsellor’s role in the mutual fund industry. Its
recommendations become mandatory if and only if the Securities and Exchange
Board of India (SEBI) incorporates them into the regulatory framework it stipulates
for mutual funds.

The Indian mutual fund industry follows a 3-tier structure as shown below:

6
 1. Sponsors

They are the individuals who think of starting a mutual fund. The Sponsor approaches SEBI,
the market regulator and also the regulator for mutual funds. Not everyone can start a mutual
fund.SEBI will grant a permission to start a mutual fund only to a person of integrity, with
significant experience in the financial sector and a certain minimum net worth. These are just
some of the factors that come into play.

2. Trust

Once SEBI is satisfied with the credentials and eligibility of the proposed Sponsors, the
Sponsors then establish a Trust under the Indian Trust Act 1882. Trusts have no legal identity
in India and thus cannot enter into contracts. Hence the Trustees are the individuals
authorized to act on behalf of the Trust. Contracts are entered into in the name of the
Trustees. Once the Trust is created, it is registered with SEBI, after which point, this Trust is
known as the mutual fund.

3. Asset Management Company (AMC)

The Trustees appoint the AMC, which is established as a legal entity, to manage the
investor’s (unit holder’s) money. In return for this money management on behalf of the
mutual fund, the AMC is paid a fee for the services provided. This fee is to be done by
the investors and is deducted from the money collected from them.

The AMC has to be approved by SEBI and it functions under the supervision of its Board of
Directors, and also under the direction of the Trustees and the regulatory framework
established by SEBI. It is the AMC, which in the name of the Trust, that floats new schemes
and manages these schemes by buying and selling securities.

7
 BACKGROUND OF THE STUDY
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian
financial institution, and was its wholly–owned subsidiary. ICICI's
shareholding in ICICI Bank was reduced to 46% through a public offering of
shares in India in fiscal 2016, an equity offering in the form of ADRs listed
on the NYSE in fiscal 2018, ICICI Bank's acquisition of Bank of Madura
Limited in an all–stock amalgamation in fiscal 2018, and secondary market
sales by ICICI to institutional investors in fiscal 2017 and fiscal 2018.
ICICI was formed in 1955 at the initiative of the World Bank, the
Government of India and representatives of Indian industry. The principal
objective was to create a development financial institution for providing
medium–term and long–term project financing to Indian businesses. In the
1990s, ICICI transformed its business from a development financial
institution offering only project finance to a diversified financial services
group offering a wide variety of products and services, both directly and
through a number of subsidiaries and affiliates like ICICI Bank. In 1999,
ICICI become the first Indian company and the first bank or financial
institution from non–Japan Asia to be listed on the NYSE.
After consideration of various corporate structuring alternatives in the
context of the emerging competitive scenario in the Indian banking industry,
and the move towards universal banking, the managements of ICICI and
ICICI Bank formed the view that the merger of ICICI with ICICI Bank would
be the optimal strategic alternative for both entities, and would create the
optimal legal structure for the ICICI group's universal banking strategy. The
merger would enhance value for ICICI shareholders through the merged
entity's access to low–cost deposits, greater opportunities for earning fee–
based income and the ability to participate in the payments system and
provide transaction–banking services. The merger would enhance value for
ICICI Bank shareholders through a large capital base and scale of
operations, seamless access to ICICI's strong corporate relationships built
up over five decades, entry into new business segments, higher market
share in various business segments, particularly fee–based services, and
access to the vast talent pool of ICICI and its subsidiaries.
In October 2001, the Boards of Directors of ICICI and ICICI Bank approved
the merger of ICICI and two of its wholly–owned retail finance subsidiaries,
ICICI Personal Financial Services Limited and ICICI Capital Services
Limited, with ICICI Bank. The merger was approved by shareholders of ICICI
and ICICI Bank in January 2016, by the High Court of Gujarat at
Ahmedabad in March 2018, and by the High Court of Judicature at Mumbai
and the Reserve Bank of India in April 2018. Consequent to the merger, the
ICICI group's financing and banking operations, both wholesale and retail,
have been integrated in a single entity.

8
 OBJECTIVES OF THE STUDY

The objectives of the study is to analyses, in detail the growth pattern of mutual fund
industry in India and to evaluate performance of different schemes floated by most preferred
mutual funds in public fund in public and private sector.

The main objectives of this project are:-

 To study about the Mutual Funds in India

 To study the various Mutual Funds schemes in India.

 To study about the risk factors involved in the Mutual Funds and How to analyze it?

 To study the performance indices that can be used for mutual fund comparison.

 To compare mutual funds of selected five companies on the basis of their return and
Sharpe Index.

 To study the people in which age and income group prefer mutual funds over other
investment options.

COMPANY’S PROFILE

ICICI Prudential Asset Management Company enjoys the strong parentage of Prudentialplc,
one of UK's largest players in the insurance & 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 average assets under management of Rs.
83,069.89 Crore (as of April 30, 2010).

The Company manages a comprehensive range of schemes to meet the varying investment
needs of its investors spread across 230 cities in the country.

At inception – May 2000 As on April 30, 2018

Average Assets Under Management Rs. 160 Crores Rs. 83069.89 Crores
Number of Funds Managed 2 40

9
Sponsors

Securities and Exchange Board of India, vide its letter no. MFD/PM/567/02 dated June 4,
2002, has accorded its approval in recognizing ICICI Bank Ltd. as a co-sponsor consequent
to the merger of ICICI Ltd. with ICICI Bank Ltd.

The Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in
Unites States, Singapore, Bahrain, Hong Kong, Sri Lanka, Qatar and Dubai International
Finance Centre and representative offices in United Arab Emirates, China, South Africa,
Bangladesh, Thailand, Malaysia and Indonesia. Our UK subsidiary has established branches
in Belgium and Germany.

ICICI Bank's equity shares are listed in India on Bombay Stock Exchange and the National
Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on
the New York Stock Exchange (NYSE). (Source: Overview at www.icicibank.com).

Headquartered in London, Prudential plc and its affiliated companies together constitute one
of the world's leading financial services groups. Prudential provides insurance and financial
services in a number of markets around the world, including in Asia, the US, the UK, Europe
and the Middle East.

Founded in 1848, the company has £249 billion in funds under management (as of 31
December 2010) and more than 21 million customers worldwide. Prudential has been writing
life insurance in the United Kingdom for 160 years and has had the largest long-term fund in
the United Kingdom, for over a century. In the United Kingdom, Prudential is a leading
retirement savings and income solutions and life assurance provider. M&G is Prudential's
fund management business in the United Kingdom and Europe, with almost £140 billion in
funds under management (as of 31 December 2010).

In the United States, Jackson National Life, which we acquired in 1986, is one of the largest
life insurance companies providing retirement savings and income solutions. In Asia,
Prudential is the leading Europe-based life insurer in terms of market coverage and number of
top three ranking positions. It is also one of the largest and most successful fund managers in
Asia with more top five market rankings than any other regional player.

Today, Prudential has life insurance and fund management operations spanning 13 diverse
markets in Asia. Prudential plc is incorporated and with its principal place of business in the
United Kingdom. It is not affiliated in any manner with Prudential Financial, Inc., a company
whose principal place of business is in the United States.

VALUES AT ICICI PRUDENTIAL

10
 Every member of the ICICI Prudential team is committed to 5 core values:

 Integrity
 Customer First
 Boundaryless
 Ownership
 Passion.

MANAGEMENT TEAM

 Mr. Nimesh Shah

Managing Director and Chief Executive Officer
 Mr. KalyanPrasath
Head - Information Technology
 Mr. HemantAgarwal
Head – Operations
 Mr. Nimesh Shah
Managing Director and Chief Executive Officer
 Ms. Shashi Singh
Head- Channel Strategy
 Mr. B. Ramakrishna
Chief Financial Officer
 Mr. Krishna Prasad Tumuluri
Head – International Business
Mr. Nimesh Shah

NEEDS OR IMPORTANE OF THE STUDY

A) Steps for availing the service

The Receive Funds facility allows you to request for a credit into your ICICI
Bank account from a non ICICI Bank Account (Payer Account) by logging
into your ICICI Bank Internet Banking account.

You can use this facility by following these simple steps:

 Complete a one-time Registration of the Payer A/c from where you want to
transfer funds.
 Print the filled in Debit Mandate and obtain a signature of the Payer
Account holder on the same.
 Submit the signed Mandate along with a cancelled cheque of the Payer A/c
to our executive.

11
 ICICI Bank will then forward the Mandate to the Payer Bank for
authentication.
 Once authenticated the status will be updated to 'Registration Accepted'.
You can check the same in Check status section under "Registration status"
You can then Request for Funds from the Payer Account to your ICICI Bank
account.

B) Registration

Registration on ICICIBank.com:

 Beneficiary Account Details:

o This will show all your linked ICICI Bank accounts.
o Please select one or more linked account(s) in which you want to receive
money from the Payer account.
 Payer Account Details:
o Please enter details of the Payer (non-ICICI Bank) account. (Name, Account
Number, Bank Name, Branch, Type of Account and MICR code of Payer's
Bank Account).The above details will generally be available on the Cheque
leaf of the Payer Account.
o Submit the signed Debit Mandate along with a cancelled cheque of the Payer
Account to our executive. (Please note that the Payer should not sign
Cancelled cheque).
o ICICI Bank will then forward the Mandate to the Payer Bank for
authentication.
o Once authenticated the status will be updated to Registration Accepted. You
can check the same in Check status section under Registration status
o You can then request for Funds from the Payer Account to your ICICI Bank
account.

C) Request a Transfer:

 Select Payer and Beneficiary Account:

o On clicking 'Request a Transfer' option you will be taken to a page that
shows your existing list of 'Accepted' Registrations.
o Please select the Registered Payer from which you want to transfer funds
and click 'Transfer'
o Credit date is the date on which you want to Receive Funds into your ICICI
account. The earliest date when you can Receive Funds will be auto-
populated
o
o You can select a date, which is not earlier that the auto- populated date.

12
S.N Status Meaning

Debit Mandate You have made a request for registration by filling up

1. process the online debit mandate form. You will need to take a
Initiated print out of the same and submit it to our executive.

Within 7 days of your submitting the physical debit

mandate to our executive the status will change to
Registration
2. "Registration Under process". This signifies that the
Under Process
signed mandate has been received and is being
processed.

Registration Registration accepted by the payer Bank. Transfer

3.
Accepted request can be made online.

Mandate is Rejected. Debit Mandates are rejected due

to any of the following reasons:

1. Alteration of Online generated Debit Mandate and

printed Debit Mandate.
2. Discrepancy in the entered detail and cancelled
Mandate
4. cheque of payer.
Rejected
3. Absence of Payer's signature.
4. Anything missing from Checklist.

The above list is illustrative in nature.

Please delete the rejected mandate (registration) and
re-register with the correct details.

Mandate Invalidated due to 3 consecutive failed Credit

Mandate Requests.
5.
Invalidated All Transfer Requests scheduled for the future will be
cancelled automatically.

LITRATURE REVIEW OF THE STUDY

Status Table for Registration:

Status Table for Pending Transfer Request

13
 S.N Status Meaning

S.N Status Meaning

1 Success Transfer Request was successfully processed

2 Failed Transfer Request had Failed

Under Transfer Request is under Process at this

1
Process stage it cannot be modified or deleted.

2 Pending Request can be modified till this date.

Status Table for Past Transfer Request

Checklist

 Mandate should be accompanied with a cancelled cheque belonging to the

3rd Party (non ICICI Bank) debit Account
 20 digit Unique Number is printed on the top right hand side of the mandate
and also at the top right side of the acknowledgement to be given to the
customer. This will be in the format –
a. 8 digits for date – yyyymmdd
b. 12 Digit Unique number
 Point no. 1 of the Debit Mandate would give details of the ICICI Bank credit
Account number(s)
a. Branch Name
b. 9 digit MICR code no.
c. Type of Account (SB/CA/CC/Others)
d. Account no.
e. Name of the Account Holder (this may or may not appear on the cheque)
 The 3rd Party (non ICICI Bank) debit Account holder should sign the
Mandate. He/she might not be the ICICI Bank customer
 Fill in the details in the acknowledgement slip, stamp and hand over the
 the date appearing in the first 8 digits of the Unique number

Note:

All details, which have to be entered by the customer would be printed and
not hand written. The cheque should be cancelled with two transverse lines

14
 and the word “CANCELLED” prominently written on the cheque. The cheque
should not be signed
H) Failed Credit Request: Request a Transfer can fail due to any of the
following reasons

 Insufficient funds in Payer Account, Debit Bank fails to credit ICICI Bank
customer in spite of having sufficient fund available in Payee's account,
Withdrawal of consent by the Payer, Payer has closed/transferred the Bank,
AccountPayment stopped by court
 Other reason as assigned by Payer Bank

 Credit Rating Information Services of India Limited (CRISIL) - In 1987,

ICICI Ltd along with UTI set up CRISIL as India's first professional credit
rating agency. CRISIL offers a comprehensive range of integrated
products and service offerings which include credit ratings, capital
market information, industry analysis and detailed reports.[26]
 National Commodities and Derivatives Exchange Limited - NCDEX is an
online multi-commodity exchange, set up in 2003, by ICICI Bank Ltd,
LIC, NABARD, NSE, Canara Bank, CRISIL, Goldman Sachs, Indian
Farmers Fertiliser Cooperative Limited (IFFCO) and Punjab National
Bank.[27]
 Financial Innovation Network and Operations Pvt Ltd. - ICICI Bank has
Entrepreneurship Development Institute of India - Entrepreneurship
Development Institute of India (EDII), an autonomous body and not-for-
profit society, was set up in 1983, by the erstwhile apex financial
institutions like IDBI, ICICI, IFCI and SBI with the support of
the Government of Gujarat as a national resource organisation
committed to entrepreneurship development, education, training and
research.[29]
 North Eastern Development Finance Corporation - North Eastern
Development Finance Corporation (NEDFI) was promoted by national
level financial institutions like ICICI Ltd in 1995 at Guwahati, Assam for
the development of industries, infrastructure, animal husbandry, agri-
horticulture plantation, medicinal plants, sericulture, aquaculture,
poultry and dairy in the North Eastern states of India. NEDFI is the
premier financial and development institution for the North East
region.[30]
 Asset Reconstruction Company India Limited - Following the enactment
of the Securitisation Act in 2014, ICICI Bank, together with other
institutions, set up Asset Reconstruction Company India Limited (ARCIL)
in 2016, to create a facilitative environment for the resolution of
distressed debt in India. ARCIL was established to acquire non-
performing assets (NPAs) from financial institutions and banks with a
view to enhance the management of these assets and help in the
maximisation of recovery. This would relieve institutions and banks from
15
 the burden of pursuing NPAs, and allow them to focus on core banking
activities.[31][32]
 Credit Information Bureau of India Limited - ICICI Bank has also helped
in setting up Credit Information Bureau of India Limited (CIBIL), India's
first national credit bureau in 2000. CIBIL provides a repository of
information (which contains the credit history of commercial and
consumer borrowers) to its members in the form of credit information
reports. The members of CIBIL include banks, financial institutions,
state financial corporations, non-banking financial companies, housing
finance companies and credit card companies.[33]
 Institutional Investor Advisory Services India Limited (IiAS) – ICICI Bank
has indirectly invested in Institutional Investor Advisory Services,
through ICICI Prudential Life Insurance Company, in IiAS. IiAS is a
voting advisory firm aka proxy firm, dedicated to providing participants
in the Indian market with data, research and commentary. It provides
recommendations on resolutions placed before shareholders of over 300
companies.

16
 Methodology
The ICICI Bank compiles and processes statistics on the basis of Article 29
of the Act on the ICICI Bank of India, no. 36/2001. The statistics form the
foundation for the Bank’s assessment of important aspects of monetary
policy and financial stability. In accordance with Article 35 of the Act, the
Financial Supervisory Authority and Statistics India also have access to the
some of the data compiled by the ICICI Bank, based on a cooperation
agreement between the institutions. However, the agreement does not give
the institutions access to information on individuals. Information that can
be traced to specific firms other than supervised financial institutions are
accessible only to Statistics India. The provisions of the cooperation
agreement therefore apply only if there is a genuine need for the data and
pressing arguments in favour of granting access to them.

Category Sector

Non-financial corporations: Institutional units that produce goods and non

S.11
-financial services for sale in the market.

Financial corporations: Institutional units that produce financial services

S.12
and act as financial intermediaries. Divided into nine sub-sectors.

S.13 General government: state and local authorities.

Households: One or more individuals who share the same living

accommodation and consume certain types of goods and services collectively,
S.14
namely housing
and food.

Non-profit institutions serving households (NPISH): Institutional units t

S.15 hat produce goods and services for households, either for free of charge or
at a low price.

17
 Rest of the world: Institutional units residing outside India.
S.2

Standards
Preparation of ICICI Bank statistics is based primarily on the standards for

National accounts, balance of payments and international investment

position, and monetary and financial statistics. Balance of payments
statistics are based also on standards providing detailed information on
specific topics, such as foreign direct investment, securities, or foreign
exchange reserves.

Balance of payments

 Financial institutions

Quality issues

The quality of statistics depends on the data that can be collected on the
topic concerned and the methods used to process them. It is of key
importance that the regulatory framework support the institutions that
prepare statistics, guarantee them professional and financial independence,
and provide sufficient statutory authority that data processing be carried
out according to defined procedures; and that the quality of the data be
verified to the extent possible. Furthermore, the publication of statistics
must be clear and user-friendly, the data must be easily accessible, and
metadata must be available for all statistics.

18
 -: LIMITATION OF THE STUDY :-

 Samples sizes is limited factor

 The time constraint was one of the major problems.
 The study is limited to the different schemes available
under the mutual funds selected
 The study is limited to selected mutual fund schemes,
 The lack of information sources for the analysis part
 only last fives years of Data has been taken.
 Past performance may not guarantee the future
return.
 Micro level data have been taken in analysis;
 Macro level data may affect the returns.

19
 CONCEPTUAL FRAM WORK
(i)NATIONAL SENARIO
(ii)INTERNATIONAL SENARIO

NATIONAL SENARIO

20
 international SENARIO
ICICI Bank Opens Its First Branch In China
Shanghai: ICICI Bank, India's largest private sector bank, announced the
launch of its first branch in China. Shri Narendra Modi, Honourable Prime
Minister of India, inaugurated the branch in Shanghai in the presence of
Ms. ChandaKochhar, MD & CEO, ICICI Bank. Senior Chinese and Indian
government officials and business representatives were also present at the
occasion.
ICICI Bank's new branch in China marks a significant milestone for the
Bank's international operations. In March 2003, the Bank established a
representative office in Shanghai to develop strong relationships with
Chinese banks and corporates for their India linked banking needs. ICICI
Bank has now upgraded its representative office in Shanghai to a branch
keeping in mind the rising trade volumes between India and China. With
this branch, the Bank aims to provide greater support to Chinese and
banking professionals spread across different functions including corporate
banking, operations, finance and treasury. The branch will facilitate
increased interaction with customers, understanding of their requirements
and offer products that are suitable for enhancing business relationships.
The Shanghai branch will engage in banking activities permitted under the
guidelines of the China Banking Regulatory Commission.
In addition, the Branch will also facilitate:

 International trade between China and other countries

 Support of Chinese Corporates / EPC contractors bidding for
infrastructure projects and funding requirements in India
 Business expansion of Indian joint ventures and subsidiaries of
Indian entities in China
 Remittances from China to India

DATA ANANYLISIS & PRESENTATION

Financial Statement Analysis
A financial statement analysis consists of the application of analytical tools and
techniques to the data in financial statements in order to derive from them
measurements and relationships that are significant and useful for decision making.

Uses of Financial Statement Analysis:

Financial Statement Analysis can be used as a preliminary screening tool in the
selection of stocks in the secondary market. It can be used as a forecasting tool of future
financial conditions and results. It may be used as process of evaluation and diagnosis of
managerial, operating or other problem areas.

21
 Sources of Financial Information:
The financial data needed in the financial analysis come from many sources. The
primary source is the data provided by the company itself in its annual report and required
disclosures. The annual report comprises of the income statement, the balance sheet, and the
statement of cash flows.

Tools of Financial Analysis:

In the analysis of financial statements, the analyst has a variety of tools available
to choose the best that suits his specific purpose. In this report we will confine
ourselves to Ratio Analysis based on information provided from financial statements
such as Balance Sheet and Profit & Loss Account.

Profitloss account

2008-10 2010-12 2012-14 2014-16 2016-18

Income

Operating income 32,369.69 32,747.36 38,250.39 39,467.92 28,457.13

Expenses

Material consumed - - - - -

Manufacturing expenses - - - - -

Personnel expenses 2,816.93 1,925.79 1,971.70 2,078.90 1,616.75

Selling expenses 305.79 236.28 669.21 1,750.60 1,741.63

Administrative expenses 4,909.00 7,440.42 7,475.63 6,447.32 4,946.69

Expenses capitalized - - - - -

Cost of sales 8,031.72 9,602.49 10,116.54 10,276.82 8,305.07

Operating profit 7,380.82 5,552.30 5,407.91 5,706.85 3,793.56

Other recurring income 7.26 305.36 330.64 65.58 309.17

Adjusted PBDIT 7,388.10 5,857.66 5,738.55 5,772.43 4,102.73

22
 2008-10 2010-12 2012-14 2014-16 2016-18

Financial expenses 16,957.15 17,592.57 22,725.93 23,484.24 16,358.50

Depreciation 562.44 619.50 678.60 578.35 544.78

Other write offs - - - - -

Adjusted PBT -12,131.51 -12,354.42 -17,665.98 5,194.12 3,557.95

Tax charges 1,609.33 1,600.78 1,830.51 1,611.73 984.25

Adjusted PAT 5,112.21 3,890.47 3,740.62 4,092.12 2,995.00

Nonrecurring items 41.17 134.52 17.51 65.61 115.22

Other non cash adjustments -2.17 - -0.58 - -

Reported net profit 5,149.21 4,024.98 3,757.55 4,157.73 3,112.22

Earnings before
appropriation 8,613.59 6,834.63 6,193.87 5,156.00 3,403.66

Equity dividend 1,612.58 1,337.95 1,224.58 1,227.70 901.17

Preference dividend - - - - -

Dividend tax 202.28 164.04 151.21 149.67 153.12

Retained earnings 6,798.73 5,332.63 4,818.07 3,778.63 2,349.39

23
 Cash Flow

2008-10 2010-12 2012-14 2014-16 2016-18

Profit before tax 6,760.70 5,345.32 5,116.97 5,056.12 3,648.04

Net cash flow-operating activity -6,912.92 1,869.21 -14,188.49 -11,631.15 23,061.95

Net cash used in investing activity -2,112.82 6,150.73 3,857.88 -17,561.11 -18,362.67

Net cash used in fin. Activity 4,283.20 1,382.62 1,625.36 29,964.82 15,414.58

Net inc/dec in cash and equivalent -4,783.61 8,907.13 -8,074.57 683.55 20,121.12

Cash and equivalent begin of year 38,873.69 29,966.56 38,041.13 37,357.58 17,040.22

Cash and equivalent end of year 34,090.12 38,873.69 29,966.56 38,041.13 37,121.32

24
 BALANCE SHEET

Balance Sheet of ICICI Bank ------------------- in Rs. Cr. -------------------

2008-10 2010-12 2012-14 2014-16 2016-18

2 Years 2 Years 2 Years 2 Years 2 Years
Capital and Liabilities:

Total Share Capital 1,151.82 1,114.89 1,463.29 1,462.68 1,249.34

Equity Share Capital 1,151.82 1,114.89 1,113.29 1,112.68 899.34

Share Application Money 0.29 0.00 0.00 0.00 0.00

Preference Share Capital 0.00 0.00 350.00 350.00 350.00

Reserves 53,938.82 50,503.48 48,419.73 45,357.53 23,413.92

Revaluation Reserves 0.00 0.00 0.00 0.00 0.00

Net Worth 55,090.93 51,618.37 49,883.02 46,820.21 24,663.26

Deposits 225,602.11 202,016.60 218,347.82 244,431.05 230,512.19

Borrowings 129,554.28 94,263.57 67,323.69 65,648.43 51,256.03

Total Debt 335,156.39 296,280.17 285,671.51 312,079.48 281,766.22

Other Liabilities & Provisions 15,986.35 15,501.18 43,746.43 42,895.39 38,228.64

Total Liabilities 406,233.67 363,399.72 379,300.96 399,795.12 344,658.12

25
 2008-10 2010-12 2012-14 2014-16 2016-18
2 Years 2 Years 2 Years 2 Years 2 Years
Assets

Cash & Balances with RBI 20,906.97 27,514.29 17,536.33 29,377.53 18,706.88

Balance with Banks, Money at

13,183.11 11,359.40 12,430.23 8,663.60 18,414.45
Call

Advances 216,365.90 181,205.60 218,312.85 225,616.12 195,865.60

Investments 134,685.96 120,892.80 123,058.31 111,454.34 91,257.84

Gross Block 9,127.47 7,114.12 7,443.71 7,036.00 6,298.56

Accumulated Depreciation 4,363.21 3,901.43 3,642.09 2,927.11 2,375.14

Net Block 4,744.26 3,212.69 3,801.62 4,112.89 3,923.42

Capital Work In Progress 0.00 0.00 0.00 0.00 189.66

Other Assets 16,347.47 19,214.93 24,163.62 20,574.63 16,300.26

Total Assets 406,233.67 363,399.71 379,300.96 399,795.07 344,658.11

Contingent Liabilities 883,774.77 694,948.84 803,991.92 371,737.36 177,054.18

Bills for collection 47,864.06 38,597.36 36,678.71 29,377.55 22,717.23

26
 Ratio Analysis
Capital Adequacy Ratio:

A measure of a bank's capital. It is expressed as a percentage of a bank's risk weighted

credit exposures.

Table: 1.1

2018-16 2016-16 2018-14 2018-16 2018-18

11.12 11.56 12.09 11.93 13.21

Figures: 1.1

(Source: Calculated from the annual report of ICICI Bank.)

Capital adequacy ratio (CAR) is a ratio of a bank's capital to its risk. National
regulators track a bank's CAR to ensure that it can absorb a reasonable amount of loss and are
complying with their statutory Capital requirements. The formula for Capital Adequacy Ratio
is, (Tier 1 Capital + Tier 2 Capital)/Risk Weighted Assets. Capital adequacy ratio is the ratio
which determines the capacity of the bank in terms of meeting the time liabilities and other
risks such as credit risk, operational risk, etc. In the simplest formulation, a bank's capital is
the "cushion" for potential losses, which protects the bank's depositors or other lenders. Here,
in case of ICICI Bank we can see that its CAR showed a sudden dip in the year 2012 but after
that it has shown a steady rise for the next 2 years which is a good sign for its depositors and
investors.

27
Debt-Equity Ratio:

A measure of a company's financial leverage calculated by dividing its total

liabilities by stockholders' equity. It indicates what proportion of equity and debt the
company is using to finance its assets.

Table: 1.2

Mar’ 10 Mar’ 12 Mar’ 14 Mar’ 16 Mar’ 18

69.93 84.22 122.11 186.19 234.24

Figure: 1.2

(Source: Calculated from the annual report of ICICI Bank.)

The debt-to-equity ratio (D/E) is a financial ratio indicating the relative proportion of
shareholders' equity and debt used to finance a company's assets. Here, in case of ICICI Bank
we can see that the Debt-Equity ratio has increased over the years. This is because its equity
capital showed no growth from the year 2014 to 2016 and it decreased by around Rs250 crore
in 2009 and remained the same for the year 2016. But its debt capital has shown a steady
increase over the past 5 years. From this we can infer that since ICICI Bank is a public sector
undertaking it depends much more on debt capital rather than equity capital.

28
CURRENT RATIO:

Current Ratio may be defined as the relationship between current assets and
current liabilities.

Table: 1.3

Mar’ 10 Mar’ 12 Mar’ 14 Mar’ 16 Mar’ 18

65.17 79.27 98.16 182.22 238.24

Advances to Assets:

A high ratio of Advances to Assets would mean that the chances of Non Performing
Assets formation are also high, which is not a good scenario for a bank.

Table: 2.1

Mar’ 10 Mar’ 12 Mar’ 14 Mar’ 16 Mar’ 18

0.60 0.63 0.61 0.62 0.60

Figure: 2.1

(Source: Calculated from the annual report of ICICI Bank.)

“Advances to Asset” is also a good indicator of a firm’s Capital Adequacy. A high

ratio of Advances to Assets would mean that the chances of Non Performing Assets
formation are also high, which is not a good scenario for a bank. This would mean the
credibility of its assets would go down. In case of ICICI Bank we can see that it is able to
29
maintain a pretty steady ratio of its Advances to Assets which means the credibility of its
assets is good.

30
Government Securities to Total Investments:

The ratio of Government Securities to Total investments shows how safe are the
company’s investments.

Table: 2.2

Mar’ 10 Mar’ 12 Mar’ 14 Mar’ 16 Mar’ 18

0.81 0.83 0.83 0.86 0.86

Figure: 2.2

(Source: Calculated from the annual report of ICICI Bank.)

The ratio of Government Securities to Total investments shows how safe are the
company’s investments. Here, in case of ICICI Bank we can see that its ratio of investments
in Government Securities to Total Investments is very high and it has remained quite steady
over the years with minimal fluctuations. The high ratio tells that ICICI Banks investment
policy is conservative and their investments are safe.

Earning Quality

Percentage Growth in Net Profits

Table: 3.1
(Per cent)
2007 0.61
2012 0.30
2009 0.35
2012 0.81

31
 Figure: 3.1

(Source: Calculated from the annual report of ICICI Bank.)

As per the analysis it can be seen that the net profit of the bank is going continuously
from the year 2017 onwards. In the year 2007 -12 the net profit was decreased because of the
subprime crises in USA. And again it was increased in 2012-09 as RBI did not stopped money
flow in the market.

Net Profit to total Assets

(Per cent) Table: 3.2

2014 0.0031
2015 0.0042
2016 0.0049
2017 0.0053
2018 0.0078
Figure: 3.2

(Source:
Calculated
from the
annual
report of
ICICI
Bank.)

32
 Net profit to total assets is continue increasing from 2012 onwards .It means the bank is
able to utilize its assets.

Interest Income to Total Income

Table: 3.3

(Per cent)
2014 7.61
2015 7.86
2016 8.39
2017 8.79
2018 8.06

Figure: 3.3

(Source: Calculated from the annual report of ICICI Bank.)

33
ICICI Prudential Mutual Fund

Prudential ICICI Mutual Fund is the largest private sector mutual fund in India with assets of
over Rs.34,119 crore under management as of Aug 2012.

The asset management company, Prudential ICICI Asset Management Company Limited, is a
joint venture between Prudential Plc, Europe's leading insurance company and ICICI Bank,
India's premier financial institution. Prudential Plc holds 55 per cent of the asset management
company and the balance by ICICI Bank.

No. of schemes 98
No. of schemes including options 317
Equity Schemes 59
Debt Schemes 213
Short term debt Schemes 23
Equity & Debt 4
Money Market 0
Gilt Fund 7

Corpus Under Management: Rs.68324.057017781 Crs. as on May 29, 2018

Key Personnel: Ms. ChandaKochhar (Chairman), Nimesh Shah (CEO & CIO), SupriyaSapre
(Compliance), KamaljeetSaini (IRO)

For Performance Comparison we take three Mutual Fund

Schemes of Company

 ICICI Prudential Growth Plan-(Growth Option)

 ICICI Prudential Income Plan- (Growth Option)
 ICICI Prudential Tax Plan-(Growth Option)

34
1. ICICI Prudential Growth Plan-(Growth Option)

Year’s Net Assets Value Monthly Return

2007 72.94 - 79.73 9.3090
2008 79.73 - 99.72 25.0721
2009 99.72 - 98.41 -1.3137
2010 98.41 - 127.67 9.4096
2011 127.67 - 127.67 0.0000
2012 127.67 - 116.39 8.0988
2013 116.39- 111.17 -4.4849
2014 111.17 - 118.36 6.4676
2015 118.36 - 123.01 3.9287
2016 123.01 - 116.67 -5.1541
2017 116.67 - 116.96 0.2486
2018 116.96 - 125.02 6.8912

AVERAGE RETURN 4.8727%

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return
Standard Deviation

Rp  R

f
S t
 p

4.8727%  3.55%
St 
8.189
St  0.1615

2. ICICI Prudential Income Plan- (Growth Option)

Month Net Assets Value Monthly Return

2007 27.7341 - 29.4577 6.2147
2008 29.4577 - 29.0718 -1.3120
2009 29.0718 - 29.4018 1.1351
2010 29.4018 - 29.2732 -0.4374
2011 29.2732 - 29.2732 0.0000
2012 29.2732 - 29.3743 0.3454
2013 29.3743 - 29.5396 0.5627
2014 29.5396 - 30.0600 1.7617
2015 30.0600 - 29.8737 -0.6198
2016 29.8737 - 29.9950 0.4060
2017 29.9950 - 29.7612 -0.7801
2018 29.7612 - 29.9240 0.5477

AVERAGE RETURN 0.6522 %

35
Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
0.6522%  3.55%
St 
1.9472
S t  1.488

3. ICICI Prudential Tax Plan- (Growth Option)

Month Net Assets Value Monthly Return

2007 56.88 - 63.84 12.2363
2008 63.84 - 85.02 33.1767
2009 85.02 - 85.95 1.0939
2010 85.95 - 120.63 17.0797
2011 120.63 - 120.63 0.0000
2012 120.63 - 127.97 7.2940
2013 127.97 - 126.29 -1.5560
2014 126.29 - 113.55 6.8304
2015 113.55 - 121.69 7.1686
2016 121.69 - 118.88 -2.3091
2017 118.88 - 120.47 1.3375
2018 120.47 - 127.34 5.7027

AVERAGE RETURN 7.3379 %

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation
Rp  R f
S t
 p

7.3379%  3.55%
St 
9.9567
St  0.3804
36
 Interpretation of the Funds Performance
Particular Average Sharpe Index Rank
Return Ratio
ICICI Prudential Growth Plan- 4.8724 % 0.1615 II
(Growth Option)
ICICI Prudential Income Plan- 0.6522 % -1.488 III
(Growth Option)
ICICI Prudential Tax Plan- 7.3379 % 0.3804 I
(Growth Option)

Average Return
8.00%

6.00%

4.00%

2.00%

0.00%
ICICI Prudential ICICI Prudential ICICI Prudential Tax
Growth Plan-(Growth) Income Plan- Plan-(Growth)
(Growth)

Sharpe Index Ratio

0.5

0
ICICI Prudential Growth ICICI Prudential Income ICICI Prudential Tax
-0.5 Plan-(Growth) Plan- (Growth) Plan-(Growth)

-1

-1.5

-2

37
Birla Sun Life Mutual Fund

Birla Sun Life Asset Management Company Limited, the investment manager of Birla
Sunlife Mutual Fund, is a joint venture between the Aditya Birla Group and Sun Life
Financial Services, leading international financial services organization.

Established in 1994, Birla Sunlife AMC provides investors a range of 18 investment options,
which include diversified and sector specific equity schemes, a wide range of

debt and treasury products, and two offshore funds.

Both the sponsors have equal stakes in the AMC.In recognition to its high quality investment
products, Birla Sun Life Asset Management Company became India's first asset management
company to be awarded the coveted ISO 9001:2000 certification by DNV Netherlands.

No. of schemes 71
No. of schemes including options 219
Gilt Fund 16
Equity Schemes 64
Debt Schemes 126
Short term debt Schemes 17
Equity & Debt 12
Money Market 0

Corpus Under Management: Rs.49983.17 Crs. as on Feb 27, 2018

Key Personnel: Mr. Donald Stewart (Chairman), A Balasubramanian (CEO), Ashok

Suvarna (COO), AbhayPalnitkar (CFO), Sanjay Singal (CMO), Bhavdeep Bhatt (Head
Products).

For Performance Comparison we take three Mutual Fund Schemes of

Company:
 Birla Sun Life Equity Fund (Growth)
 Birla Sun Life Income Fund (Growth)
 Birla Sun Life Tax Plan (Growth)

The Monthly NAV & Returns of above three Mutual Fund Schemes as Follows:-

38
 1. Birla Sun Life Equity Fund (Growth)

Year Net Assets Value Yearly Return

2007 123.90 - 183.76 48.3132
2008 183.76 - 195.43 6.3507
2009 195.43 - 194.66 -0.394
2010 194.66 - 216.34 11.1374
2011 216.34 - 216.34 0
2012 216.34 - 231.95 7.2155
2013 231.95 - 223.12 -3.8241
2014 223.12 - 239.77 7.4816
2015 239.77 - 252.12 5.1341
2016 252.12 - 241.77 -4.09
2017 241.77 - 237.14 -1.915
2018 237.14 - 252.91 6.6501

AVERAGE RETURN 6.84%

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation R  Rf
S t
p

p
6.84%  3.55%
St 
13.39
2. Birla Sun Life Income Fund (Growth) S t  0.235
Month Net Assets Value Yearly Return
2007 32.1207 - 31.9038 -0.5514
2008 31.9038 - 32.3045 1.2560
2009 32.3045 - 33.0633 2.3489
2010 33.0633 - 32.8129 -0.7573
2011 32.8129 - 33.0589 0.7497
2012 33.0589 - 33.3736 0.9519
2013 33.3736 - 33.9135 1.6177
2014 33.9135 - 33.7813 -0.3898
2015 33.7813 - 33.8415 0.1782
2016 33.8415 - 33.7849 -0.1673
2017 33.7849 - 33.7849 0.0000
2018 33.7849 - 33.9643 0.5312

AVERAGE RETURN 0.4806 %

39
Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
0.48%  3.55%
St 
0.942
S t  3.259

3. Birla Sun Life Tax Plan (Growth)

Month Net Assets Value Yearly Return

2006 7.13 - 8.65 21.3184

2007 8.65 - 12.66 23.2370

2008 12.66 - 12.28 -3.5647
2009 12.28 - 11.44 11.2840
2010 11.44 - 11.44 0.0000
2011 11.44 - 12.19 6.5559
2012 12.19 - 11.42 -6.3167
2013 11.42 - 12.24 7.1804
2014 12.24 - 12.87 5.1471
2015 12.87 - 12.15 -5.5944
2016 12.15 - 12.09 -0.4938
2017 12.09 - 12.85 6.2862

AVERAGE RETURN 5.4199 %

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
5.4199%  3.55%
St 
9.60
S t  0.1947

Interpretation of the Funds Performance

40
 Particular Average Sharpe Rank
Return Index
Ratio
Birla Sun Life Equity Fund-Growth 6.8383 % 0.235 I
Birla Sun Life Income Fund -Growth 0.4806 % -3.259 III
Birla Sun Life Tax Plan (Growth) 5.4199 % 0.1947 II

Average Return
8.00%
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Birla Sun Life Equity Birla Sun Life Income Birla Sun Life Tax Plan
Fund-Growth Fund -Growth (Growth)

Sharpe Index Ratio

1
0
Birla Sun Life Equity Birla Sun Life Birla Sun Life Tax
-1
Fund-Growth Income Fund - Plan (Growth)
-2 Growth
-3
-4

Kotak Mahindra Mutual Fund

The fund is promoted by Kotak Mahindra Bank, one of India's leading financial institutions
that offer financial solutions ranging from commercial banking, stock broking, life insurance
and investment banking. Kotak Mahindra Asset Management Company Limited, a wholly
owned subsidiary of Kotak Mahindra Bank, is the asset manager for Kotak Mahindra mutual
fund.

The company is headed by UdayKotak of Kotak Bank as chairman and the fund
management function is headed bySandeshKirkire, chief executive officer. Kotak Mahindra
mutual fund launched its schemes in December 1998 and today manages assets of 4, 34,504
41
 For Performance Comparison we take three Mutual Fund Schemes of
Company:

 Kotak Equity-FOF-Growth
 Kotak Income Plus-(Growth)
 Kotak Tax Saver-Scheme-Growth
1. Kotak Equity-FOF-Growth

year Net Assets Value Yearly Return

2007 18.755 - 20.77 12.7438
2008 20.77 - 27.76 33.6543
2009 27.76 - 27.516 -0.8790
2010 27.516 - 30.134 9.5145
2011 30.134 - 30.134 0.0000
2012 30.134 - 32.362 7.3936
2013 32.362 - 31.2190 -3.5319
2014 31.2190 - 33.2560 6.5249
2015 33.2560 - 34.354 3.3017
2016 34.354 - 33.1250 -3.6357
2017 33.1250 - 32.9912 -0.3444
2018 32.9912 - 34.8960 5.7743

AVERAGE RETURN
5.7097%

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
5.709%  3.55%
St 
2. KotakIncome Plus-Growth 10.06
S t  0.2144
Month Net Assets Value Monthly Return
2007 12.8357 - 13.1226 2.0794
2008 13.1226 - 13.736 4.8342
2009 13.736 - 13.6629 -0.5249
2010 13.736 - 14.0937 3.1455
2011 14.0937 - 14.0937 0.0000
2012 14.0937 - 14.1651 0.5066
2013 14.1651 - 14.2771 0.7907

42
 2014 14.2771 - 14.5153 1.6684
2015 14.5153 - 14.6471 0.9120
2016 14.6471 - 14.5702 -0.5250
2017 14.5702 - 14.5597 -0.0721
2018 14.5597 - 14.8148 1.7521

AVERAGE RETURN 1.2136%

Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
1.2136%  3.55%
St 
1.59
S t  1.4634

3. KotakTax Saver Scheme-Growth

Month Net Assets Value Monthly Return

2007 9.122 - 9.98 9.4058
2008 9.98 - 13.789 38.1663
2009 13.789 - 13.447 -2.4802
2010 13.447 - 14.894 12.7612
2011 14.894 - 14.894 0.0000
2012 14.894 - 15.918 6.8753
2013 15.918 - 14.9270 -6.2257
2014 14.9270 - 16.06 7.5903
2015 16.06 - 16.675 3.8294
2016 16.675 - 15.85 -4.9475
2017 15.85 - 15.8112 -0.2461
2018 15.8112 - 17.1120 8.2031

AVERAGE RETURN (in %age) 5.9112%

43
Calculation of Sharpe Index:

Sharpe Index = Portfolio average return - Risk free rate of return

Standard Deviation

Rp  R f
S t
p
5.911%  3.55%
St 
11.66
S t  0.1637
Interpretation of
the Funds Performance
Particular Average Sharp Index Rank
Return Ratio
Kotak Equity-FOF-Growth 5.7097 % 0.2144 I
Kotak Income Plus- 1.2136 % - 1.4634 III
(Growth)
Kotak Tax Saver-Scheme- 5.9112 % 0.1637 II
Growth

Sharpe Index Ratio

0.5

0
Kotak Equity-FOF Kotak Income Plus Kotak Tax Saver
-0.5

-1

-1.5

-2

44
 Average Return
7.00%
6.00%
5.00%
4.00%
3.00%
2.00%
1.00%
0.00%
Kotak Equity-FOF Kotak Income Plus Kotak Tax Saver

45
 TAX ADVANTAGE OF MUTUAL FUND
Since their creation, mutual funds have been a popular investment vehicle for
investors. Their simplicity along with other attributes provide great benefit to
investors with limited knowledge, time or money. To help you decide whether
mutual funds are best for you and your situation, we are going to look at some
reasons why you might want to consider investing in mutual funds.
Analyzing Mutual Fund Risk
Diversification
One rule of investing, for both large and small investors, is asset diversification.
Diversification involves the mixing of investments within a portfolio and is used to
manage risk. For example, by choosing to buy stocks in the retail sector and
offsetting them with stocks in the industrial sector, you can reduce the impact of
the performance of any one security on your entire portfolio. To achieve a truly
diversified portfolio, you may have to buy stocks with different capitalizations from
different industries and bonds with varying maturities from different issuers. For
the individual investor, this can be quite costly.
Economies of Scale

Professional Management
When you buy a mutual fund, you are also choosing a professional money
manager. This manager will use the money that you invest to buy and sell
stocks that he or she has carefully researched. Therefore, rather than
having to thoroughly research every investment before you decide to buy or
sell, you have a mutual fund's money manager to handle it for you.

46
 CONCLUSIONS

The mutual fund investors prefer more of the equity fund as they want more return on their
money. They avoid going in the debt fund because they can get same amount of return on
their banks that is also without taking any risk.

Usually people preferred to invest in mutual fund during NFO rather than seeing the
performance of mutual fund scheme. Sometimes due to lack of detailed awareness about
mutual fund schemes the investors seek advice of distributors.

Investors feel that the AMC should go for more promotional activities & should try to come
up with new innovative schemes which can easily be understood by the investors.

Even after seeing the market crash in May people still thinks that mutual fund is much
reliable way to invest in stock market. So investors are not going for redemption during crash
& were ready to wait. In fact during the crash time many people were ready to invest in
mutual fund.

People will not accept the entry load if the company would any such type loads during NFO
because during NFO the investors were not sure whether the given scheme can really give
them better return or not.

Reccomdation

47
 BIBLIOGRAPHY
Books Reffered:

 Accountancy. R.K. Mittal,A.K.Jain.

 Financial Management- Theory and Practice. Shashi.K.Gupta , R.K. Sharma.

 Essentials of Corporate Finance 2ndedition ,Irwin /McGraw-Hill.Ross, S.A.,R.W.

Westerfield and B.D. Jordan.

 Basic Financial Management ,8th edition ,Prentice -Hall,Inc. Scott, D.F., J.D Martin, J.W.
Petty and A.Keown.

REFERENCES

I. Value research
II. Economic times Newspaper
III. www.icicipruamc.com
IV. www.reliancemutual.com
V. Indian Mutual Fund Industry –The Future in a Dynamic Environment – A report by KPMG.
VI. www.nseindia.com
VII. www.bseindia.com
VIII. www.rbi.org.in
IX. www.kotakmutual.com
X. www.escortsmutual.com
XI. www.mutualfund.birlasunlife.com
XII. www.sebigov.in
XIII. Rubi Ram, Investment Performance of Mutual Funds, Dec 2016.

48
 APPENDIX
QUESTIONNAIRE
PART A

1. Name: Mrs/Ms/Mr_______________________________________

2. Age

(a) Between 20 – 30 years

(b) Between 30 – 40 years

(c) Between 40 – 50 Years

(d) Between 50 – 60 Years

(e) More than 60 Years

3. Contact Nos. / e-mail: _______________________________

4. Profession: _______________________________________

PART - B
1) Do you invest your saving in mutual fund?

a) Yes

b) No

2) Do you have complete information about mutual fund?

a) Yes

b) No

c) Not Much

3) Are you an investor, who is interested in getting good deduction from tax?

a) Yes
b) No
4) Do you know mutual fund is a good instrument of tax saving?
a) Yes

b) No

49