Professional Documents
Culture Documents
ON
SUBMITTED TO
SCHOOL OF MANAGEMENT
SRM UNIVERSITY
PROF. VELUMURUGAN
BY
SHAILESH. D. MODI 3510940164
VINOTH. S 3510940200
SURESH.C 3510940208
KARTHIK KANNAN 3510940080
ASHOK KUMAR 3510940026
MALARVIZHI 3510910941
1
ACKNOWLEDGEMENT
2
TABLE OF CONTENT
2. Introduction 7-13
10. Limitations 55
11. Recommendations 56
12. Conclusions 57
13. Bibliography 58
3
EXECUTIVE SUMMARY
OBJECTIVE
RESEARCH METHODOLOGY
FINDINGS
4
LIMITATION
RECOMMENDATION
CONCLUSION
5
is a combination of Modern + Traditional Insurance Plans and which
provides Tax benefit, Risk Cover and better growth to the people
whereas traditional Insurance plans are not consider as better growth
Plans.
Therefore, We can realize that Investment
scenario in market is totally change and every people want to invest
their money in modern Investment plans those are more attractive
and more flexible.
6
INTRODUCTION
INVESTMENTS
What is Investment….??
The money you earn is partly spent and the rest saved for
meeting future expenses. Instead of keeping the savings idle you
may like to use savings in order to get return on it in the future
which helps to your unplanned expenses.
The sooner one starts investing the better. By investing early you
allow your investments more time to grow, whereby the concept of
compounding (as we shall see later) increases your income, by
accumulating the principal and 7 the interest or dividend earned on
it, year after year. The three golden rules for all investors are:
7
• Invest early
• Invest regularly
• Invest for long term and not short term
8
What factors determine interest rates?
9
Investment plan in the present scenario:
10
Bombay Stock Exchange (BSE):
11
manager to purchase a diverse portfolio of stocks or bonds. Mutual
funds are highly cost efficient and very easy to invest in. By pooling
money together in a mutual fund, investors can purchase stocks or
bonds with much lower trading costs than if they tried to do it on
their own. Also, one doesn't have to figure out which stocks or bonds
to buy. But the biggest advantage of mutual funds is diversification.
Insurance:
Life is a roller coaster ride and is full of twists and turns. You
cannot take anything for granted in life. Insurance policies are a
safeguard against the uncertainties of life.
12
that it has attained called as Net Asset Value (NAV). The policy value
at any time varies according to the value of the underlying assets at
the time.
• Life protection
• Investment and Savings
• Flexibility
• Adjustable Life Cover
• Investment Options
• Transparency
• Options to take additional cover against
• Death due to accident
• Disability
• Critical Illness
• Surgeries
• Liquidity
• Tax planning
13
OBJECTIVE & SCOPE
Objective:
The primary objective was to analysis the market and find out
the potential customer and motivate or promote them to invest their
money in modern Investment plan rather than traditional Investment
plan.
Search Method:
14
Contact Method:
Telephone Interview
Personal Interview
15
INDUSTRY PROFILE
OVERVIEW OF INVESTMENT:
Institutional investment
International listings
16
the London Stock Exchange rose from 387 in 1970 to 553 in 1990 to
636 in 2006. The number of foreign companies listed on the NYSE
has also risen rapidly in the 1990s. There is a keen competition
across the world’s leading stock exchanges to promote international
listing and gain greater influence. In the recent period, the US
experienced a slowdown in the listing of foreign companies. The
decline is attributed to stringent corporate governance norms that
were applied following the corporate abuses found in the beginning of
the decade. The US is now examining in greater detail measures to
gain the prominence once it enjoyed in the international listings. The
Alternative Investment Market of London Stock Exchange attracted
huge interest from SMEs from a large number of countries.
17
Currently, looking at the five most important asset classes -
real estate, equities, bonds, commodities, and art (including
collectibles) Admittedly, some assets have performed better than
others, but in general every sort of asset has risen in price, and this
is true everywhere in the world.
18
ROLE OF INVESTMENT IN OUR LIFE:
INVESTMENT AS INSURANCE:
19
Investment as “Tax Planning”:
There are two types of Investment plans are exist. Most of the
products offered by Investment companies are developed and
structured around these “basic” plans and are usually an extension or
a combination of these plans. So, what are these plans and how do
they differ from each other?
20
Short Term Investment Plan:
21
and the amount of withdrawal will be limited to 50% of the balance
at credit at the end of the 4th year immediately preceding the year in
which the amount is withdrawn or at the end of the preceding year
whichever is lower the amount of loan if any.
Bonds:
22
ORGNISATIONAL PROFILE
23
VISION:
24
Promoters:
25
Introduction of ICICI Bank
ICICI Group
Overview :-
26
the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's
acquisition of Bank of Madura Limited in an all-stock amalgamation in
fiscal 2001, and secondary market sales by ICICI to institutional
investors in fiscal 2001 and fiscal 2002. 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.
27
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 2002, by the High Court of Gujarat at
Ahmedabad in March 2002, and by the High Court of Judicature at
Mumbai and the Reserve Bank of India in April 2002. Consequent to
the merger, the ICICI group's financing and banking operations, both
wholesale and retail, have been integrated in a single entity.
28
PRODUCT PROFILE
The salient points that you make like to keep in mind before
choosing on your strategic partnership.
Wide reach:
ICICI Bank has been on an expansion spree in the last year and
in this period it has seen its branch size increase to around 540
branches. The bank is also leveraging on a large ATM network in
order to augment its reach further. At the end of FY03, the bank had
an ATM network of over 1,500 ATMs spread across the country. Due
to the aggressive branch and ATM network expansion, the bank has
been able to grow its retail assets significantly. Going forward, the
bank is in a good position to tap the retail market due to its extended
reach.
29
Benefits from the Securitization Act:
Restructuring operations:
30
ICICI Bank Provides Various Types of Investments
Plans are:
MUTUAL FUNDS:
Mutual Funds pool money of various investors to purchase a wide
variety of securities while pursuing a specific goal. Selection of
Securities for the purpose is done by specialists from the field.
Returns generated are distributed to the Investors. At ICICI Bank NRI
services, we will help you determine which types of funds you need
to meet your investment goals. This may include the following types
of funds:
31
professionals working with them who make an in depth study of the
investment option to take an informed decision.
Risk Diversification:
Convenience:
Liquidity:
Reduction in Costs:
Mutual funds have a pool of money that they have to invest. So they
are often involved in buying and selling of large amounts of securities
that will cost much lower than when you invest on your own.
Tax Advantages:
32
Investment in mutual funds also enjoys several tax advantages.
Dividends from Mutual Funds are tax-free in the hands of the investor
(This however depends upon changes in Finance Act). Also, capital
gain accrued from mutual funds investments for period of over one
year is treated as long term capital appreciation and is taxed at a
lower rate of 10% without benefit of indexation or 20% with benefit
of indexation.
Other Advantages:
Where to Invest?
You have a choice to invest with the top 17 AMCs in India offering
around 300 schemes
AMC offered
• Alliance Mutual • Cholamandalam • DSP Merrill lynch • Deutsche
Fund Mutual Fund
• Franklin Templeton • HDFC • HSBC • ING Vysya
• JM Financial • Kotak mahindra • Principal • Prudential
• Reliance • Standard Chartered • Sundram • Tata
• Birla
33
Why invest with us?
LIFE INSURANCE:
Being away from India doesn't mean you have to compromise the
safety and security of your loved ones. In fact, your savings from
your time overseas can be easily canalized to meet your family's
needs - now and in the future. So, whether its your dream to retire in
your hometown; to secure funds for your children's education; or to
build assets, ICICI Prudential has a range of solutions that can be
customized to meet your needs. Today, In Life Insurance ULIP(Unit
linked Insurance Plan) is most popular because it provides good
wealth creation and risk cover.
34
1. Flexibility
1. Flexibility to choose Sum Assured.
2. Flexibility to choose premium amount.
3. Option to change level of Premium /Sum Assured even
after the plan has started.
4. Flexibility to change asset allocation by switching
between funds.
2. Transparency
1. Charges in the plan & net amount invested are known to
the customer.
2. Convenience of tracking one’s investment performance
on a daily basis.
3. Liquidity
1. Option to withdraw money after few years (comfort
required in case of exigency).
2. Low minimum tenure.
3. Partial / Systematic withdrawal allowed
4. Fund Options
1. A choice of funds (ranging from equity, debt, cash or a
combination).
2. Option to choose your fund mix based on desired asset
allocation
35
Investment and Saving Plans:
• Lifetime Gold
• Lifetime Plus
• Lifetime Super
• Life Link Super
Retirement Plans:
36
Child Plans:
As a responsible parent, you want to ensure a hassle-free, successful
life for your child. However, life is full of uncertainties and even the
best-laid plans can go wrong. SmartKid Education Plans are designed
to provide flexibility and to safeguard your child's future education
and lifestyle, taking all possibilities into account. SmartKid Child Plans
has a bouquet of three products which can help you secure your
child's
37
1. Maximiser: High risk funds and these funds in 100% share
market related and it provides 25%-35% earning.
2. Balancer : Moderate risk funds and these funds in
Name Return
ICICI Maximiser 29.80
KOTAK Growth 25.88
HDFC Growth 22.85
AVIVA Easy Life 22.26
BIRLA Enhance 13.38
(up to September 1,2007, figure in %)
RESEARCH METHODOLOGY
38
Achieving accuracy in any research requires in depth study
regarding the subject. As the prime objective of the project is
compare various Investment products available in the market with
the existing players in the market and the impact of entry of private
players in the market, the research methodology adopted was
basically based on primary data via which the most recent and
accurate piece of first hand information that could be collected from
all possible source. Secondary data was used to support primary data
wherever needed.
Questionnaire method
Direct interview method
Observation method
39
To conduct this research the target population was the people
aware or not aware from modern Investment plan like: Mutual
Fund, Unit Linked Insurance Plan, Systematic Investment Plan
and Fixed Deposit and paying tax.
Target geographic area was Jaipur. Sample size of 90 people
was taken
To these 90 people a questionnaire was given, the
questionnaire was a combination of both open ended and
closed question.
Some people already have investment plan were also
interviewed to know their prospective.
Finally the collected data and information was analyzed and
compiled to arrive at the conclusion and recommendation
given.
These source were use to obtain information on, ICICI Bank and
other competitors history, current issues, policies, procedures etc,
wherever required.
INTERNET
MAGZINES
NEWSPAPERS
JOURNALS
DATA ANALYSIS
40
MARITAL STATUS NO.OF RESPONDANTS
MARRIED 65
UNMARRIED 25
SAMPLE SIZE 90
Graph No. 1
No. of Respondents
70 65
60
50
40
30 25
20
10
0
MARRIED UNMARRIED
OBSERVATIONS:
41
65 samples are married out of 90 samples and they were more
potential customer.
Graph No. 2
No. of Respondants
45 41
40
35 32
30
25
20 17
15
10
5
0
GOVT. EMPLOYEE PVT. EMPLOYEE SELF EMPLOYEE
42
OBSERVATIONS:
Graph No. 3
No. of Respondants
41%
Pvt. Sector
Govt. Secotor
59%
43
OBSERVATION:
Graph No. 4
No. of Respondants
30
26
25
22
20
16
14
15 12
10
0
Bank FD ULIP Mutual Fund Stock SIP
Market
44
OBSERVATION:
Graph No. 5
No. of Respondants
11% 20%
30%
39%
45
OBSERVATION:
Graph No. 6
No. of Respondents
12%
10%
58%
20%
46
OBSERVATION:
Graph No. 7
No. of Respondents
18%
OBSERVATION:
47
As I observed that max people are of below 30 they have
willingness to achieve high growth for fulfill their dreams and
therefore, they want to invest their money in pure equity
market rather then debt or money market
Graph No. 8
No. of Respondents
36
Yes
No
54
OBSERVATION:
48
I observed in during my training 54 samples never invest their
money in MFs while 36 samples invested their money in MFs.
Graph No. 9
No. of Respondents
23%
Yes
No
77%
OBSERVATION:
49
I observed that people are not investing their money in market due
to increasing inflation so 77% were said Inflation is significant risk.
Graph No. 10
No. of Respondents
36%
Yes
No
64%
OBSERVATION:
50
64% believe that down period of stock market is a buying
opportunity because that time they can get more units instead
of up period of stock market.
No. of Respondents
Yes
No
39
51
51
OBSERVATION:
No. of Respondents
18%
41%
14%
27%
OBSERVATION:
52
Respondents Percentage
Service Quality 37 41%
Flexibility 24 27%
Maturity 13 14%
Returns 16 18%
Total 90 100%
Graph No. 13
No. of Respondents
19%
Yes
NO
81%
OBSERVATION:
53
II observed that in during my training 81% has Investment plans
already and many of people has their policy from private companies
rather than govt. companies.
Graph No. 14
No. of Respondents
20%
37%
18%
25%
54
OBSERVATION:
Respondents Percentage
ICICI Prudential 33 37%
HDFC Std. Life 23 25%
Bajaj Allianz 16 18%
Other 18 20%
Total 90 100%
Observation & Findings
55
I observed that many of respondents agreed that down stock
period is a buying opportunity.
56
LIMITATION
57
RECOMMENDATIONS:
58
CONCLUSION
59
BIBLIOGRAPHY
Reference Books
Newspapers:
Times of India
Business Standard
Websites:
www.icicibank.com
www.iciciprulife.com
www.icicipruamc.com
www.iloveindia.com
www.stockmaster.com
Search Engine:
www.google.com
www.wikipedia.com
Others:
60
ANNEXURE
Name………………………………………….
Occupation……………………………………
Contact No…………………………………....
Marital Status…………………………………
61
5. How much risk do you prefer in Investment Plans?
d. High Risk
e. Moderate Risk
f. Low Risk
62
h. Other………………………………………
63