A Project Report

On
“A Study of Indian Mutual Fund Industry: Evaluation of
Top Asset Management Companies and Their Schemes”
For
ICICI Prudential Asset Management Company.

Submitted by
Shubham Sanjay Madake
MBA-II-166

Under guidance of
Prof. Sameer Thakur

Submitted to
Savitribai Phule Pune University
In Partial Fulfillment of the requirements for the award of
Masters of Business Administration [MBA]

Through
Dr. D. Y. Patil Unitech Society’s
Dr. D. Y. Patil Institute of Management And
Research Pimpri, Pune
2023-2024
COMPANY CERTIFICATE
INSTITUTE CERTIFICATE
DECLARATION
I hereby declared that all the facts and figures included in the project report are result
of my own research and investigations including formal analysis of the entire project
work and the same have not been previously submitted to any examination of this
University or any other University.

The material borrowed from other sources and incorporated in the project has been
duly acknowledged and/or referenced.

I understand that I could be held responsible and accountable for plagiarism, if any,
detected later.

This declaration will hold good and in my wise belief with full Consciousness.

Date: Signature

Place: Pune-411018 Shubham Sanjay

Madake
ACKNOWLEDGEMENT
The fulfillment and happiness associated with accomplishing the project
successfully would not be complete without acknowledging all the people that
made it possible.

I would like to take the opportunity to thank and express my deep sense of
gratitude to my corporate mentor Mr. Kumar Anupam and my faculty guide Prof.
Sameer Thakur.

I am greatly indebted to both for providing their valuable guidance at all stages of
the study, their advice, constructive suggestions, positive and supportive attitude,
and continuous encouragement, without which it would have not been possible to
complete the project.

I would also like to thank Ms. Alina Ali who despite busy schedule has co-
operated with me continuously and indeed, his valuable contribution and guidance
have been certainly indispensable for my project work.

I am thankful to Director of Dr. D Y Patil Institute of Management & Research,

Prof. Dr. Vishal Wadajkar for his consistent encouragement.

I am thankful to our ROMG head Mr. Gaurav jajoo Sir for giving me the
opportunity to work with the company.

I owe my whole hearted thanks and appreciation to the entire staff of the company
for their cooperation and assistance during my project.

I hope that I can build upon the experience and knowledge that I have gained and
make a valuable contribution towards this industry in coming future.

Date: Signature
Place: Pune-411018 Shubham
Sanjay Madake
Contents
EXECUTIVE SUMMARY.........................................................................................................6
CHAPTER 1:................................................................................................................................1
INTRODUCTION........................................................................................................................1
1.1 Mutual Funds...............................................................................................................1
1.2 Purpose of studying Mutual Funds:...........................................................................5
CHAPTER 2:................................................................................................................................7
2.1 Objectives of the study:................................................................................................5
2.2 Significance of study:...................................................................................................6
2.3 Scope of study:..............................................................................................................6
2.4 Limitations of study:....................................................................................................6
CHAPTER 3:................................................................................................................................7
INDUSTRY/SECTOR PROFILE..............................................................................................7
2.1 Description of industry:...............................................................................................7
2.2 Size of market and products:......................................................................................7
2.3 Market analysis:.........................................................................................................10
COMPANY PROFILE..............................................................................................................13
3.1 About the company....................................................................................................13
3.2 Vision & Mission statement......................................................................................14
3.3 Company history:......................................................................................................14
3.4 Progress of organization............................................................................................14
3.5 Milestones of organization........................................................................................15
3.6 Products & services:..................................................................................................15
CHAPTER 4:..............................................................................................................................16
REVIEW OF LITERATURE...................................................................................................16
CHAPTER 5:..............................................................................................................................17
RESEARCH METHODOLOGY.............................................................................................17
5.1 Objective of the Study:..............................................................................................17
5.2 Research Design.........................................................................................................17
5.3 Sources of Data...........................................................................................................17
5.4 Methods used for Data Collection............................................................................18
5.5 Instruments used........................................................................................................19
5.6 Tools used for Data Analysis:...................................................................................21
CHAPTER 6:..............................................................................................................................22
DATA ANALYSIS AND INTERPRETATION......................................................................22
6.1 Comparative Analysis:..............................................................................................22
CHAPTER 7:..............................................................................................................................32
OBSERVATION AND FINDINGS..........................................................................................32
7.1 Findings:.....................................................................................................................32
7.2 Portfolio Management services (PMS) at ICICI Prudential AMC.......................33
CHAPTER 8:..............................................................................................................................37
CONCLUSION..........................................................................................................................37
CHAPTER 9:..............................................................................................................................38
LIMITATIONS..........................................................................................................................38
REFERENCES...........................................................................................................................39
ABBREVIATION......................................................................................................................39
EXECUTIVE SUMMARY

The Indian capital market has seen exponential growth during the last few years. A huge
contribution to which is given by the reforms of economy, industrial policy, public
sector, and the financial sector as well. The Indian economy has been opened and there
have been many developments in the money and capital market. Mutual funds provide
investors with a risk reduction tool by diversification of portfolio. The growth of an
economy very much depends on the extent of investments that are made in the
corporate sector. Mutual funds help investors channel their savings into the capital
market, hence getting investment to the corporate sector. The funds pooled by Mutual
funds are invested into the money market, debt, and capital market instruments. Our
study helps us to get more knowledge about the Mutual fund industry, understand the
various schemes offered by different Mutual fund houses which are available in the
market and do comparative analysis of those funds to know which are the most
beneficial to the investors, know about the different portfolio management services
offered by ICICI Prudential AMC Ltd., and understand the different parameters or ways
through which Mutual fund scheme can be compared with one another. The research
helps get better insights into the Mutual fund industry in India, understand the history of
Mutual funds in India, the type of Mutual funds which are available to investors, how
to identify and select the best Mutual fund schemes out of the large pool of schemes
available in the market. This research also gives an understanding of the various
parameters such as Sharpe ratio, Treynor ratio, Jensen’s alpha, Standard deviation and
Expense ratio can be used to do a comparison between different Mutual fund schemes
that are available in the market. Portfolio management services are a great way through
which investors can mitigate the risk and manage their funds professionally with acute
guidance and expert suggestions regarding investing into the right stocks. ICICI
Prudential AMC has its own PMS service called as ICICI Prudential Alternate
Investments, understanding the working of which is included in this research project.
Also, this research provides necessary guidance and knowledge to those who are not
well aware about the Mutual fund industry.
CHAPTER 1:

INTRODUCTION

1.1 Mutual Funds:

Mutual funds are a pool of funds collected from many invested that are invested in
stock, bonds, money market instruments and other assets. These funds are operated by
professional money managers. The Mutual funds companies responsible for managing
these funds are also known as AMCs (Asset Management Companies). These AMCs
develop a portfolio which is structured and maintained to match the investment
objective stated in prospectus. This allows the investors to add a substantial number of
securities to their portfolio rather than buying each security individually at a higher
price. Mutual funds also do provide investors with the opportunity to increase their
buying power and diversify their holdings. Portfolio managers on behalf of their
investors make investments based on their own expertise and continuous market
research.

Mutual funds industry has seen a lot of changes in the last couple of years in India,
many international players have step foot in the Mutual fund industry bringing a lot of
expertise in managing funds. Investors thus have a lot of schemes to choose from
depending on their individual profiles.

History of Mutual funds in India:

The Mutual Fund industry in India had its beginning in 1963. The Unit Trust of India
(UTI) was formed through a Parliamentary act and was under the supervision of the
Reserve Bank of India (RBI). UTI launched the first Mutual fund scheme in India
called Unit Scheme 1964.

During the years 1987-1993, the Mutual fund industry saw the inflow of several funds
started by public sector banks and state-run insurance companies. In 1987, the first
‘non-UTI’ fund was set up by the State Bank of India. Following this Punjab National
Bank, Canara Bank, Indian Bank, Bank of Baroda and LIC set up Mutual funds too.

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The establishment of the Securities Exchange Board of India (SEBI) in April 1992
helped in the promotion of a more mature and regulated Indian securities market, with a
focus on the protection of investors’ interests. SEBI came up with the first set of
guidelines for the Mutual fund industry in 1993. The year also saw the launch of the
first private Mutual fund Kothari Pioneer. By the end of 1993, there were about Rs
47,000 crore in assets under management by Mutual funds.

The industry expanded in the subsequent years with many foreign sponsors setting up
Mutual funds in India. At the end of January 2003, there were 33 Mutual fund houses
with a total AUM of more than Rs 1.2 lakh crore.

From 2003-2013 the Mutual fund industry witnessed a slowdown. The global financial
crisis played a major role in reducing the faith of investors in Mutual funds or financial
markets. Additionally, the abolishment of the entry load by SEBI made things more
difficult for Mutual funds.

Currently, the Mutual fund industry is seeing renewed interest from investors. With
easy access to the financial markets, many new investors have invested in Mutual
funds. This is clearly visible as the total assets under management of the Mutual fund
industry are Rs 46.94 trillion in the year 2023, as per the Association of Mutual Funds
in India (AMFI). Moreover, the introduction of a Systematic Investment Plan (SIP) has
made investing more convenient for retail investors.

Ways of investing in Mutual funds:

Lump-sum Investment:

When we are talking about investing into Mutual funds the first option that is put
forward to us is the Lump-sum investment option. One large chunk of money is
invested in a single go while making a Lump-sum investment in a Mutual fund. The
minimum amount for making such investment usually is Rs.5000 and in multiple of
Rs.1000 thereafter. The time horizon for which is suggested to make a Lump-sum
investment is a minimum of 3 years. Lump-sum investment does get affected by the
market volatility which would either boost your investment or give it a dip.

Systematic Investment Plan (SIP):

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Systematic investment plan is offered by Mutual funds to investors who are looking for
investing a fixed amount in a Mutual fund scheme periodically. The amount invested
per month could be as low as Rs. 500. SIPs have gained popularity due to its Rupee cost
averaging and less worries about the market volatility. Rupee cost averaging is a
practice that allow SIPs holders to buy more units of their fund when the NAV goes low
and less units when the NAV goes high. This means that an SIP of ₹1000 gets you 50
units when the NAV is Rs. 20, but gets you 100 units when the NAV is Rs.10. The
average cost for buying those 150 units would be Rs. 2000/150 units i.e., ₹ 13.33.

Benefits through investing in Mutual funds:

There are a lot of benefits to investing in Mutual funds apart from just mitigating the
risk of investment, some of them are as listed under:

 Professionally managed funds: The funds which are procured from the investors
are invested by the fund managers of the AMCs who are responsible for
consistently monitoring the market and create an investment strategy to
accomplish the goals of the fund.

 Diversification: Mutual funds allow you to reduce risks through providing an

opportunity to diversify your investments through different asset class
depending on your investment needs.

 Liquidity: Mutual funds provide liquidity through allowing you to sell your
units on any business day and receive the current market value of tour
investment based on the current NAV of the fund.

 Affordability: The minimum investment for investing into Mutual funds is very
low and allows to you do periodic investments through SIP (Systematic
Investment Plan) as well.

 Flexibility and variety: You have a large pool of different types of funds you can
choose from to invest in, such as thematic fund, blue-chip stock fund, large-cap,
mid-cap, multi-cap funds as well.

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List of Top Asset management Companies in India 2024:

Sr No. AMC Assets Managed (as on 31-Sept-2024)

1. SBI Mutual Fund ₹ 11,31,518 crores

2. ICICI Prudential Mutual Fund ₹ 8,68,553 crores

3. HDFC Mutual Fund ₹ 7,77,480 crores

4. Nippon India Mutual Fund ₹ 5,61,467 crores

5. Kotak Mahindra Mutual Fund ₹ 4,78,062 crores

6. Aditya Birla Sun Life Mutual Fund ₹ 3,77,499 crores

7. UTI Mutual Fund ₹ 3,51,806 crores

8. Axis Mutual Fund ₹ 3,20,926 crores

9. Mirae Asset Mutual Fund ₹ 1,96,849 crores

10. DSP Mutual Fund ₹ 1,87,226 crores

Drawbacks of investing in Mutual funds:

There might be a lot of benefits to investing in Mutual funds but let’s not ignore the
potential drawbacks that can arise from investing in them.

 Fluctuating returns: Mutual funds do not guarantee you immediate and fixed
returns; there is always a possibility for depreciation in the value of your fund.

 No Control: Unlike stock trading, though Mutual funds are managed by fund
managers and supported by a team of analysts the investors do not have any

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control on their investment. Decisions regarding your fund are taken by your
fund manager only.

 Costs: The value of a Mutual fund might fluctuate over the period based on the
market conditions. But there are fees and expenses involved towards
management of a fund and there is an entry-exit load which are to be borne by
an investor towards a Mutual fund as well.

 Fund evaluation: Investors have a large pool of funds to choose from making it
difficult for them to extensively research and evaluate the value of different
funds. A fund’s NAV helps an investor to know the value of a fund’s portfolio.

1.2 Purpose of studying Mutual Funds:

The primary focus of doing this research project was to know about Mutual funds and
their functioning, in addition to that doing a comparative analysis of selected schemes
offered by different Mutual fund houses is also done simultaneously. This highlights the
different types of schemes available under the Mutual funds category and analyzes the
returns associated with those schemes. Also, this study helps to understand the different
terminologies used under the Mutual fund schemes, the kinds of funds that are available
in the market, the ways through which investment is done into Mutual funds and the
benefits of investing into Mutual funds.

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CHAPTER 2:

OBJECTIVES AND SCOPE OF STUDY

Title of Project: A Study of Indian Mutual Fund Industry: Evaluation of Top

Asset Management Companies and Their Schemes.

1.3 Objectives of the study:

 To study the overview of the Mutual fund industry and various schemes offered
to investors.
 To perform comparative analysis of selected schemes offered by different
Mutual fund houses (AMCs).
 To guide the investors about investment in Mutual funds scheme through tele-
calling.
 To conduct a study about portfolio suggestions offered by ICICI Prudential
AMC to its clients.
 To study various parameters to analyze the performance of various Mutual fund
schemes.

1.4 Significance of study:

The study conducted will help us get more in-depth knowledge about the Mutual funds
industry and how investor’s shortlist the fund based on the analysis done by them as
well as suggestions given to them by ICICI Prudential AMC. Some of the major points
which are to be considered crucial are discussed below:

 The study will give us better understanding of the various participants in a

Mutual fund investment.
 It will also help us to know how to choose the type of fund based on returns,
time horizon, and the risk appetite of the investor.
 We’ll also be comparing the funds offered by different Mutual fund houses to
know which are the most favorable for investors to invest.

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1.5 Scope of study:

The current market scenario offers investors various ways to invest either into private or
public financial institutions, which creates a lot of confusion for them about where to
invest. With the help of this study an individual can get education about Mutual funds to
become financially literate. Mutual funds help in creating wealth for the investors in the
longer run which at present is not seen due to lack of financial literacy. As the study
gives us a brief overview of the Mutual fund industry and the various schemes offered
by different Mutual fund houses, we can do a comparative analysis of these schemes
and gain insights about where to invest and what type of risks are associated with them.

1.6 Limitations of study:

 This study is limited to selected investments methods only.

 This study was done as part of an internship project and had a time constraint
making it difficult to do a thorough analysis of the topic.
 The parameters which were selected for the comparison are limited and hence
do not guarantee selection of the right Mutual fund scheme.
 The data which is used is secondary in nature and can vary as per the sources
from which they’re gathered

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CHAPTER 3:

INDUSTRY/SECTOR PROFILE

2.1 Description of industry:

With a diversified financial sector expanding rapidly with growth of existing firms as
well as new entities entering the market, India has emerged as one of the fastest
growing fintech markets in the world with a market size estimated at US$ 150 billion
by 2025. The Indian financial sector comprises of commercial banks, pension funds,
insurance companies, NBFCs, Mutual funds and many other financial entities. RBI
(Reserve Bank of India) has allowed new entities to operate payments banks as well.
But the financial sector in India is predominantly a banking sector with commercial
banks accounting for more than 64% of the total assets held by Indian financial system.

The MSMEs have been facilitated by RBI to gain easy access to finance, this includes
credit guarantee fund scheme, guidelines regarding collateral requirements and setting
up Micro Units Development and Refinance Agency (MUDRA), Making India one of
the most vibrant capital markets.

2.2 Size of market and products:

Market size:

 Average Assets Under Management (AAUM) of Indian Mutual Fund Industry

for the month of June 2023 stood at ₹ 61,15,581 crores.
 Assets Under Management (AUM) of Indian Mutual Fund Industry as on June
30, 2023, stood at ₹ 61,15,581 crore.
 The AUM of the Indian MF Industry has grown from ₹ 9.75 trillion as on June
30, 2013, to ₹61.16 trillion as on June 30, 2024, more than 6-fold increase in a
span of 10 years.
 The MF Industry’s AUM has grown from ₹ 24.51 trillion as on June 30, 2019, to
₹61.16 trillion as on June 30, 2024, around 2.5-fold increase in a span of 5 years.

The Industry’s AUM had crossed the milestone of ₹10 Trillion ( ₹10 Lakh Crore) for
the first time in May 2014 and in a short span of about three years, the AUM size
had

8
increased more than two folds and crossed ₹ 20 trillion ( ₹20 Lakh Crore) for the first
time in August 2017. The AUM size crossed ₹ 30 trillion ( ₹30 Lakh Crore) for the first
time in November 2020. The Industry AUM stood at ₹61.16 Trillion ( ₹ 61.15 Lakh
Crore) as on June 30, 2024.

Types of Mutual funds in India:

1. Based on structure:

 Open-ended funds: These funds are for investors who are seeking liquidity and
have no limit when or how many units can be purchased; entry and exit can be
done throughout the year on the current NAV.

 Close-ended funds: These funds are bounded by maturity date for redemption,
have pre-decided unit capital amount and allow purchase only during a specific
period.

 Interval funds: These funds allow investors to purchase or redeem their units
when the trading window opens at a specific period.

2. Based on asset class:

 Equity funds: These funds invest money in shares of a certain company and the
returns depend on how the market performs. They can be categorized into large-
cap funds, small-cap funds, focused funds and many more.

 Debt funds: These funds offer stability and regular income with relatively less
risk by investing into corporate bonds, government securities and treasury bills.
They can be categorized into long duration fund, short duration fund, corporate
bond fund and many more.

 Hybrid funds: These funds invest in both debt and equity instruments and the
ratio can be fixed or varied based on the Mutual fund house. The broad types of
funds are balanced or aggressive funds.

 Solution-oriented funds: These funds are for specific goals like building funds
for children’s education or marriage, or retirement.

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 Other funds: Index funds invest based on certain stock indices and fund of funds
are categorized under this head.

3. Based on investment goals:

 Growth funds: These funds invest primarily in high performance stocks to earn
capital appreciation and can be an attractive option for investors seeking high
returns over a long period.

 Tax-saving funds (ELSS): With a minimum investment of three years these

funds help investors invest into company securities and qualify for tax
deduction.

 Liquidity based funds: Funds categorized based on their liquidity rate come
under this category. Ultra-short term and liquid funds for short duration whereas
retirement funds for longer duration.

 Capital protection funds: Partially investing into fixed income instruments and
the rest into equities these funds allow capital protection with minimal loss.

 Fixed-maturity funds: Investing into debt market instruments which ensure

maturity period just as the same as the fund itself.

 Pension funds: These funds invest with the idea of providing regular returns
after a long period of investment. They’ve less potential but steady returns in
future.

4. Based on risk appetite:

Investors can also invest into Mutual funds based on the risk that they want to take;
low-risk funds are for short duration and hence the returns they generate are low,
medium-risk funds invest a portion in debt instruments to balance risk and high-risk
funds offer the possibility of higher return as compared to the other two.

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2.3 Market analysis:
Indicated expected growth:

India’s financial services industry has experienced huge growth in the past few years.
This momentum is expected to continue. India’s private wealth management Industry
shows huge potential. India is expected to have 6.11 lakh HNWIs by 2025. This will
indeed lead India to be the fourth-largest private wealth market globally by 2028.
India’s insurance market is also expected to reach US$ 250 billion by 2025. This will
further offer India an opportunity of US$ 78 billion in additional life insurance
premiums from 2020-30.

India is today one of the most vibrant global economies on the back of robust banking
and insurance sectors. The relaxation of foreign investment rules has received a positive
response from the insurance sector, with many companies announcing plans to increase
their stakes in joint ventures with Indian companies. Over the coming quarters, there
could be a series of joint venture deals between global insurance giants and local
players.

 The Association of Mutual Funds in India (AMFI) is targeting a nearly five-fold

growth in AUM to US$ 1.15 trillion (Rs. 95 lakh crore) and more than three
times growth in investor accounts to 130 million by 2025.
 India’s Fintech space is expected to further fuel this growth in various segments.
India's mobile wallet industry is estimated to grow at a Compound Annual
Growth Rate (CAGR) of 150% to reach US$ 4.4 billion by 2022, while mobile
wallet transactions will touch US$ 388.8 billion (Rs. 32 trillion) during the same
period.
 According to Goldman Sachs, investors have been pouring money into India’s
stock market, which is likely to reach >US$ 5 trillion, surpassing the UK, and
become the fifth-largest stock market worldwide by 2024.

Current trends in Mutual funds industry:

 The Mutual fund houses have launched 117 new fund offers of around 54 active
schemes and 63 passive schemes in the first seven months in 2024. These
numbers do not include debt fund NFOs.

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 The thematic funds - another category had around 25 new fund offers during
January to July 2024. The new schemes were from business cycle, innovation
fund, defense, active momentum, non-cyclical consumer, quant, energy,
manufacturing, and transportation and logistics theme.
 The flexi cap category had around four new fund offers. Bajaj FinServ Mutual
Fund, the new entrant in the Mutual fund industry, came up with the new fund
offer of its flexi cap scheme. The other fund houses like ITI Mutual Fund, Mirae
Asset Mutual Fund, and 360 one Mutual Fund also launched flexi cap schemes.
 In the passive category, 63 new ETFs were launched. Several Mutual fund
houses such as Axis Mutual Fund, DSP Mutual Fund, HDFC Mutual Fund,
ICICI Prudential Mutual Fund, Mirae Asset Mutual Fund came up with new
fund offerings of ETFs. Both DSP Mutual Fund and HDFC Mutual Fund have
launched four new ETFs - Index schemes.
 Around 31 new fund offers were index schemes. Index Funds - Other category
included index schemes based on Nifty Small cap 50 Index, Nifty 500 Value 50
Index, Nifty Microcap 250 Index, and Nifty Financial Services Ex-Bank Index.
 In the last one-month, Mutual fund houses have filed drafts for 15 new equity
Mutual fund schemes. Motilal Oswal Mutual Fund is leading with the maximum
number of drafts.
 According to AMFI monthly data, around 94 open-ended NFOs were launched
during the January -June 2024 period (last available data). These 94 new funds
offer mobilized Rs 53,662 crore. The monthly data of AMFI includes debt fund
NFOs, too.

Factors influencing Mutual funds industry:

 Income per capita: Per capita income is the national income divided by the
number of people in a county. This per capita income can affect investment in
terms of ability to buy products circulating in the market.
 Trends: Trends can also affect the prices of investment based on the attention of
the public to the investment. When an investment trends in the market the prices
tend to be higher and vice versa.

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 Political situation: The country’s political situation can also affect the value of
investment, if the county is in a bad political situation, then investors tend to
withdraw their investments hence decreasing the value of investment.
 Industrial and economic situation: The more investors who are interested in
injecting funds into an industry, the value of their investment will also increase.
This can help increase the flow of the economy in a country.
 Infrastructure and facilities: The better the condition of the facilities and
infrastructure provided, the more investors will be interested in injecting funds
into the providers of these facilities and infrastructure. Therefore, the investment
value will also increase.

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COMPANY PROFILE

3.4 About the Company:

 Company name: ICICI Prudential Asset Management Company Limited
 Founder: Joint venture between ICICI Bank Limited and Prudential Corporation Holdings
Ltd.
 Owners: ICICI Bank (India) and Prudential plc (UK)
 Industry: Asset Management, Mutual Fund
 Year of establishment: 1993
 Headquarters: Mumbai, Maharashtra, India
 CEO: Mr. Nimesh Shah
 Registered Address: ICICI Prudential Asset Management Company Ltd, One BKC, 13th
Floor, Bandra Kurla Complex, Bandra (E), Mumbai 400051, Maharashtra, India

ICICI Prudential AMC, a joint venture between ICICI Bank and Prudential Corporation
Holdings Ltd, is one of India's largest and most reputable asset management companies.
Since its inception in 1993, it has played a crucial role in shaping the Indian mutual fund
industry by offering a diverse range of investment products to retail and institutional
investors. The company grew substantially after ICICI Bank and Prudential entered into the
joint venture, merging ICICI’s local expertise with Prudential’s international experience in
asset management. By 2023, ICICI Prudential AMC managed assets worth over ₹3 lakh
crore and had a workforce of over 1,000 employees, dedicated to providing tailored
investment solutions and excellent customer service. ICICI Prudential AMC offers a wide
selection of equity, debt, hybrid, and other schemes tailored to cater to the diverse financial
needs of its clients.

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3.5 Vision & Mission statement:
Vision:

To be the most respected asset management company in India by providing innovative solutions to cater
to all investment needs.

Mission:

To encourage financial discipline and provide superior long-term investment solutions to

investors through expertise, integrity, and transparency.

3.3 Company history:

ICICI Prudential AMC was established in 1993 as a joint venture between ICICI Bank, a leading
Indian financial institution, and Prudential Corporation Holdings Ltd, a UK-based company. The
company quickly grew to become a market leader in the mutual fund industry, consistently
introducing new funds and offering investors a broad range of investment options. By 2023,
ICICI Prudential AMC had over 4 million investor accounts and had earned multiple awards for
its consistent performance, reliability, and customer satisfaction.

3.4 Progress of organization:

 Registered with the Securities and Exchange Board of India (SEBI) for operating mutual
fund schemes.
 Offers a comprehensive range of mutual funds across equity, debt, hybrid, and solution-
oriented categories.
 Established a robust online presence with platforms like the ICICI Prudential AMC website
and mobile app, enabling investors to invest, monitor, and manage their portfolios.
 Extensive distribution network across India through partnerships with banks, financial
advisors, and distributors.
 Research based financial advice on all classes to suit all investing and trading styles.
 Education and Training option for investors and traders in association with our ICICI
Securities.

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3.5 Milestones of organization:

 2022: Named the Best Fund House at multiple industry awards for consistent fund
performance.
 2021: Recognized as a leader in customer service in asset management.
 2019: Achieved the milestone of managing assets worth over ₹3 lakh crore.

3.6 Products & services:

 Portfolio Management Service & equity Alternate Funds.

 Mutual Funds.
 Real Estate.
 Offshore Funds

3.10 SWOT Analysis

Strengths
 Market Leadership: Large brand with high trust, backed by ICICI and Prudential.
 Broad Reach: Extensive distribution, including rural and semi-urban markets.
 Skilled Fund Management: Experienced team with a strong performance track record.

Weaknesses
 Equity Market Dependence: Heavy reliance on equity products; vulnerable to market
swings.
 High Expense Ratios: Some funds have higher costs, potentially deterring price-sensitive
investors.

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Opportunities
 Growing SIP Popularity: Rising SIP adoption in India boosts potential client base.
 Digital Transformation: Opportunity to enhance digital platforms for seamless investor
experiences.
 ESG and Sustainable Funds: Increasing demand for ESG funds aligns with new investor
interests.

Threats
 Intense Competition: Price pressures and competition from both traditional AMCs and
fintech disruptors.
 Regulatory Uncertainty: SEBI’s frequent regulatory updates could impact margins and
operations.
 Shift to Direct Mutual Funds: Growing preference for direct investments might reduce
inflows into regular funds.

17
CHAPTER 4:

REVIEW OF LITERATURE

(Verma & Nema, 2022) In their research paper “Mutual Fund Industry in India- an
Empirical Analysis” with an objective to study the growth of Indian Mutual fund
industry found that the Mutual fund industry in India is growing by large-scale and the
number of investors is increasing with the increase in the geographical area as well.
Additionally, they found that with the current amount of growth as well the AUM/GDP
ratio of Indian Mutual fund industry is low compared to global average.

(Guruprasad, Singh, & Singh, 2019) In their research paper “Mutual Fund Industry in
India An analytical study of Various Brands and Schemes - Study on Financial
Performance and Customer preference” made an attempt to understand the performance
and preference of Mutual fund products and services in India with marketing and
finance perspective and found that awareness of the Mutual funds has increased over a
period of time which can be confirmed by the emergence of new Mutual fund schemes
day by day.

(Rokade, 2021) In her research paper “A Study on the Growth of Mutual funds in India”
with an objective to analyze the performance of the selected mutual fund equity
schemes on risk and return basis” found that a large number of investors analyze
schemes on the basis of its past performance and feel that new funds involve higher risk
and bear high expenses to the investors. AMCs should provide proper information to the
investors regarding the schemes which are put forth to them.

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CHAPTER 5:

RESEARCH METHODOLOGY

5.1Research Problem:

The Indian mutual fund industry has grown rapidly, offering a range of schemes to cater to
diverse investor profiles. However, with numerous schemes across multiple asset management
companies (AMCs), investors often face challenges in choosing the right options that align with
their financial goals and risk tolerance. This research seeks to address the need for a structured
evaluation of top AMCs and their mutual fund schemes to support investors in making informed
investment decisions.

The study will focus on:

 Providing an overview of the mutual fund industry and the types of schemes
available.
 Conducting a comparative analysis of selected schemes from leading AMCs.
 Offering insights into portfolio suggestions provided by ICICI Prudential AMC.
 Identifying performance parameters that influence mutual fund success.

5.2 Research Design:

Type of Research:

Descriptive Research:

Descriptive research can be defined as the research that tries to explain the
characteristic features of the population under study. This research is based on the
concept of 'reflective thinking' that discusses about the objectives and assumptions
regarding a research study. Descriptive research is concerned with answering the
questions like who, what, when, where, and how regarding a phenomenon or situation.
It can be carried out on all those areas which are quantitative in nature. The descriptions
in this research are used to calculate the frequencies, averages, central tendencies, etc.
Sometimes, it is better to conduct a survey before carrying out the descriptive research.

19
5.3 Sources of Data:
Secondary Data:

The data collection method used for this research was purely secondary data; Secondary
data is the data which is already available and not collected by the researcher on
primary basis. Factsheets of different Mutual fund houses were used for the purpose of
collecting data related to Mutual fund schemes and information related to portfolio
management services at ICICI Prudential AMC, the official website of ICICI Prudential
AMC was used. More data was collected for descriptive analysis through different
websites.

Fact Sheets:

The factsheet is a concise document with a plethora of information about how the fund
is managed; it is disclosed on a monthly basis. This article tries to decode the factsheet
and explains how investors should use it for making investment decisions.

The factsheet provides all the general information on the fund – its objective or
philosophy, options (growth or dividend), plans (direct and regular), net asset value
(NAV) of each plan, minimum investment amount, systematic features (SIP, SWP,
STP) and assets under management (AUM) data.

Things to look for in Fact Sheet:

 Basic information about the fund and fund type.

 Performance aspects.
 Fund manager details.
 Portfolio aspects.
 Key ratios.

These are the majority of information that one can gather from the fact sheets of a
Mutual fund. The fact sheets are floated by the fund’s respective AMCs at the end of
every month.

20
5.4 Methods used for Data Collection:
Fact Sheets:

The fact sheets of 5 different Mutual fund houses were uses to collect data for doing
comparative analysis of the Mutual fund schemes. The list of these Mutual fund houses
are as follows:

a. SBI Mutual Fund- Factsheet July 2024

b. Bandhan Mutual Fund- Factsheet July 2024
c. ICICI Prudential Mutual Fund- Factsheet July 2024
d. Aditya Birla Sunlife Mutual Fund- Factsheet July 202
e. Nippon India Mutual Fund- Factsheet July 2024

Company Website:

To collect the data regarding the portfolio management services of ICICI Prudential
AMC, Data was collected from ICICI Prudential AMC’s official website
(www.icicipruamc.com)

21
5.5 Instruments used:
1) Sharpe Ratio:

Sharpe ratio is named after Willian Sharpe, an American economist 1996. Sharpe ratio
is used to analyze the performance of securities. It helps investors to gauge the risk-
adjusted returns of their investment. It is considered that the higher the Sharpe ratio is,
the more return on investment is expected in proportion to the amount of risk taken.
Sharpe ratio helps you to acknowledge the additional return on the security above the
benchmark return concerning taken risk. Basically, a benchmark acts as a standard to
compare the performance of a security with its peer.

Formula:

Sharpe ratio = (return on investment - risk free rate of return) / standard deviation

2) Standard Deviation:

A standard deviation is a number (expressed as a percentage) that can be used to show

how much the returns of a Mutual fund scheme are likely to deviate from its average
annual returns. When applied to historical returns over a period, the standard deviation
can be used as a tool to measure the volatility of a fund. Higher standard deviation
means higher volatility of the fund.

Formula:

Where:

 Ri- The return observed in a specific time frame (say one year or three years)

 R avg- The average returns observed over this time frame

 N- The number or the sample size

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3) Treynor Ratio:

The Treynor ratio, also known as the reward-to-volatility ratio, is a performance metric
for determining how much excess return was generated for each unit of risk taken on
by a portfolio. Excess return in this sense refers to the return earned above the return
that could have been earned in a risk-free investment. Although there is no true risk-
free investment, treasury bills are often used to represent the risk-free return in the
Treynor ratio. Risk in the Treynor ratio refers to systematic risk as measured by a
portfolio's beta. Beta measures the tendency of a portfolio's return to change in
response to changes in return for the overall market.

Formula:

4) Jensen’s Alpha:

The Jensen's measure, or Jensen's alpha, is a risk-adjusted performance measure that

represents the average return on a portfolio or investment, above or below that predicted
by the capital asset pricing model (CAPM), given the portfolio's or investment's beta
and the average market return. This metric is also commonly referred to as simply
alpha.

Formula:

Alpha = R(i) - (R(f) + B x (R(m) - R(f)))

Where:

R(i) = the realized return of the portfolio or investment

R(m) = the realized return of the appropriate market index

R(f) = the risk-free rate of return for the time period

B = the beta of the portfolio of investment with respect to the chosen market index

23
5) Expense Ratio:

The expense ratio is the percentage that denotes the amount of money paid to
the AMC as a fee to manage your investment. In other words, it is the per-unit cost for
running and managing the Mutual fund. The expense ratio differs from one Mutual fund
to another. You do not pay for this expense ratio separately; it is calculated as a
percentage of the daily investment value.

Formula:

Expense Ratio= Total expenses/Average AUM

Where:

Total expense: The costs incurred by the AMC mentioned above like fund manager’s
fee, marketing, and distribution expenses, legal/audit costs.

Average AUM: The total value of all investors’ money in that fund.

5.6 Tools used for Data Analysis:

1) Tables:

A data table is a document comprising columns, rows and cells that contain specific
values. They store information that people can retrieve later and update as needed. The
data table title, column headers and row headers can help a user understand the
information in the table more clearly. The document also processes the data through
various operations, such as ordering, arranging, filtering and searching.

2) Bar Graphs:

Bar charts are one of the many techniques used to present data in a visual form so that
the reader may readily recognize patterns or trends.

Bar charts usually present categorical variables, discrete variables or continuous

variables grouped in class intervals. They consist of an axis and a series of labelled
horizontal or vertical bars. The bars depict frequencies of different values of a variable
or simply the different values themselves. The numbers on the y-axis of a vertical bar
chart or the x-axis of a horizontal bar chart are called the scale.

24
CHAPTER 6:

DATA ANALYSIS AND

INTERPRETATION

6.1 Comparative Analysis:

To do a comparative analysis of different Mutual fund schemes offered by multiple
Mutual fund houses in India, Data of 5 different AMCs were taken and through their
monthly fact sheets different ratios were analyzed in order to derive outcomes out of it.
The types of fund which were selected to conduct the comparative analysis were:

 Equity linked saving schemes.

 Large-Cap Fund.
 Mid-Cap Fund.
 Balanced Advantage Fund.

The comparative analysis results are derived on the basis of Standard Deviation, Sharpe
Ratio, Treynor Ratio, Jensen’s Alpha, and Expense Ratio of the different Mutual fund
schemes lying under the aforementioned types of fund.

The same types of fund were used and under that 5 different Mutual fund houses are
taken to do a return based analysis, under which the data of past 3 years are analyzed to
understand which Mutual fund scheme under differed AMCs provides better returns to
it employees. The Intervals are:

 1 Year Return.
 3 Year Return.
 5 Year Return.

Below mentioned are the different tables containing information about the different
Mutual fund houses, their Mutual fund schemes and their respective ratios derived from
the Mutual fund’s own factsheets. The interpretation for tables is mentioned with the
table and the type of fund itself. Bar charts are used for a better representation of the
Returns given by Mutual fund schemes selected for study.

25
Ratios based analysis:

Equity Linked Saving Schemes:

Scheme Sharpe Standard Treynor Jensen's Expense Benchmark

Name Ratio Deviation Ratio Alpha Ratio
Bandhan Tax 1.07 12.63% 0.23 2.57 Regular: S&P BSE
Advantage 1.74% 500 TRI
(ELSS) Fund Direct:
0.63%

Aditya Birla 0.52 12.08% 0.07 -2.53 Regular: NIFTY 500

Sunlife ELSS 1.67% TRI
Tax Saver Direct:
Fund 0.90%
ICICI 0.91 12.48% 0.18 0.96 Regular: NIFTY 500
Prudential 1.71% TRI &
ELSS Tax Direct: NIFTY 200
Saver Fund 1.06% TRI
Nippon India 1.10 13.14% 0.19 3.25 Regular: NIFTY 500
Tax Saver 1.69% TRI
(ELSS) Fund Direct:
1.02%
SBI Long 1.49 13.50% 0.2 8.75 Regular: S&P BSE
Term Equity 1.59% 500 TRI
Fund (ELSS) Direct:
0.93%

Interpretation:

In the ELSS fund type, Bandhan Tax Advantage fund in terms of Treynor ratio
performs better and have lowest Expense Ratio compared to other schemes both regular
and direct plan; Aditya Birla Sunlife ELSS Tax Saver Fund has lower Standard
deviation; SBI Long Term Equity Fund have the Highest Sharpe ratio and Jensen’s
alpha compared to other funds.

26
Large-Cap Fund:

Scheme Sharpe Standard Treynor Jensen's Expense Benchmark

Name Ratio Deviation Ratio Alpha Ratio
Bandhan 0.86 13.13% 0.12 1.14 Regular: S&P BSE
Large-Cap 2.08% 100 TRI
Fund Direct:
0.91%

Aditya Birla 0.92 12.15% 0.12 0.90 Regular: NIFTY 100

Sunlife 1.64% TRI
Frontline Direct:
Equity Fund 0.97%
ICICI 1.25 11.69% 0.14 4.20 Regular: NIFTY 100
Prudential 1.45% TRI
Bluechip Direct:
Fund 0.87%
Nippon India 1.28 12.66% 0.18 5.42 Regular: S&P BSE
Large-Cap 1.61% 100 TRI
Fund Direct:
0.74%
SBI Blue- 0.88 11.81% 0.17 0.63 Regular: S&P BSE
chip Fund 1.49% 100 TRI
Direct:
0.90%

Interpretation:

In the Large-Cap Fund type, Nippon India Large-Cap Fund has the highest Sharpe ratio,
Treynor Ratio and Jensen’s alpha compare to other schemes in category; ICICI
Prudential Bluechip Fund has the lowest Standard deviation and lowest Expense ratio as
compared to all other schemes in the same category.

27
Mid-Cap Fund:

Scheme Sharpe Standard Treynor Jensen's Expense Benchmark

Name Ratio Deviation Ratio Alpha Ratio
Bandhan - - - - Regular: S&P BSE
Mid-Cap 2.09% 150 Midcap
Fund Direct: Index
0.57%

Aditya 1.16 14.22% 0.19 -1.06 Regular: NIFTY

Birla 1.89% Mid-Cap
Sunlife Direct: 150 TRI
Mid-Cap 1.04%
Fund
ICICI 1.13 14.68% 0.27 -0.23 Regular: NIFTY
Prudential 1.85% Mid-Cap
Midcap Direct: 150 TRI
Fund 1.00%
Nippon 1.44 14.38% 0.26 3.74 Regular: NIFTY
India 1.61% Mid-Cap
growth Direct: 150 TRI
Fund 0.81%
SBI 1.32 12.03% 0.3 2.21 Regular: NIFTY
Magnum 1.38% Mid-Cap
Mid-Cap Direct: 150 TRI
Fund 0.72%

Interpretation:

In the Mid-Cap Fund type, Nippon India growth Fund has the highest Sharpe Ratio and
performs better in terms of Jensen’s alpha also; SBI Magnum Mid-Cap Fund have
lowest Standard deviation, Treynor ratio and also have lowest expense ratio as
compared to other schemes in the same category.

28
Balanced Advantage Fund:

Scheme Sharpe Standard Treynor Jensen's Expense Ratio Benchmark

Name Ratio Deviation Ratio Alpha
Bandhan 0.46 7.03% 0.04 -1.28 Regular: 1.94% NIFTY 50
Balanced Direct: 0.63% Hybrid
Advantage Composite
Fund debt 50:50
Aditya Birla 0.80 7.62% 0.06 -1.38 Regular: 1.79% CRISIL
Sunlife Direct: 0.64% Hybrid
Balanced 50:50
Advantage Moderate
Fund Index

ICICI 1.44 4.77% 0.07 -1.38 Regular: 1.46% NIFTY 50

Prudential Direct: 0.85% Hybrid
Balanced Composite
Advantage debt 50:50
Fund
Nippon 0.85 6.36% 0.07 1.22 Regular: 1.75% CRISIL
India Direct: 0.56% Hybrid
Balanced 50:50
Advantage Moderate
Fund Index

SBI 0.98 5.9% 0.08 3.01 Regular: 1.7% NIFTY 50

Balanced Direct: 0.68% Hybrid
Advantage Composite
Fund debt 50:50

Interpretation:

In the Balanced Advantage Fund type, ICICI Prudential Balanced Advantage Fund has
better Sharpe ratio, Standard Deviation, and have the lowest Expense ratio compared to
other funds; SBI Balanced Advantage fund has highest Treynor ratio and Jensen’s

29
alpha.

30
Returns:

Equity Linked Savings Scheme:

Scheme Name 1 Year 3 Year 5 Year

Bandhan Tax 34.08% 20.41% 21.30%
Advantage (ELSS)
Fund
Aditya Birla 34.76% 13.20% 13.30%
Sunlife ELSS Tax
Saver Fund
ICICI Prudential 34.71% 18.53% 20.01%
ELSS Tax Saver
Fund

Nippon India Tax 44.36% 22.98% 17.58%

Saver (ELSS) Fund
SBI Long Term 57.54% 27.70% 24.14%
Equity Fund (ELSS)

Interpretation:

The above data shows that for an investment into ELSS fund for a tenure of 1 Year the
highest returns are offered by SBI Long Term Equity Fund (ELSS); for a tenure of 3
Year SBI Long Term Equity Fund offered the highest return and it also gave highest
return of 24.14% in 5year tenure in ELSS Category.

31
ELSS Returns Chart
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Large-Cap Fund:

Scheme Name 1 Year 3 Year 5 Year

Bandhan Large- 35.54% 18.19% 17.26%
Cap Fund
Aditya Birla 32.32% 17.99% 17.07%
Sunlife Frontline
Equity Fund
ICICI Prudential 39.29% 22.48% 21.58%
Bluechip Fund

Nippon India 39.32% 25.45% 19.20%

Large-Cap Fund
SBI Blue-chip 26.25% 16.84% 16.60%
Fund

Interpretation:

The above data shows that for an investment into Large-Cap Fund for tenure of 1 Year
and 3 Year, the highest returns are offered by Nippon India Large-Cap Fund with
39.32% and 25.45% and for 5 Year span ICICI Prudential Bluechip Fund with 21.58%.

32
Large-Cap Returns Chart
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Mid-Cap Fund:

Scheme Name 1 Year 3 Year 5 Year

Bandhan Mid-Cap 53.01% N. A N. A
Fund
Aditya Birla 49.17%- 23.41% 21.72%
Sunlife Mid-Cap
Fund
ICICI Prudential 58.08% 24.43% 27.07%
Midcap Fund

Nippon India 58.16% 29.38% 28.24%

Growth Fund
SBI Magnum Mid- 39.23% 24.79% 26.30%
Cap Fund

Interpretation:

The above data shows that for an investment into Mid-Cap Fund for tenure of 1 Year,
3 year and 5 Year Nippon India Growth Fund offers return if 58.16%, 29.38% and
28.24% respectively.

33
Mid-Cap Returns Chart
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Balanced Advantage Fund:

Scheme Name 1 Year 3 Year 5 Year

Bandhan Balanced 18.49% 10.07% 11.02%
Advantage Fund
Aditya Birla 21.65% 12.10% 12.80%
Sunlife Balanced
Advantage Fund
ICICI prudential 22.55% 14.14% 14.51%
Balanced
Advantage Fund
Nippon India 24.41% 12.76% 12.07%
Balanced
Advantage Fund
SBI Balance 23.45% N. A N. A
Advantage Fund

34
Interpretation:

The above data shows that for an investment into Balanced Advantage Fund category
for the tenure of 1 Year the highest returns are offered by Nippon India Balanced
Advantage Fund with 24.41%; for the tenure of 3 Year and 5 Year ICICI Prudential
Balanced Advantage Fund offered highest returns with 14.14% and 14.51%
respectively.

Balanced Advantage Returns Chart

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35
CHAPTER 7:
OBSERVATION AND FINDINGS
7.1 Findings:
Based on the comparative analysis done on the five AMCs four different Mutual fund
schemes following findings were found:

Based on ratios:

 In the ELSS category, SBI Long Term Equity Fund is more feasible as it has a
higher Sharpe ratio, and Alpha and other ratios support the findings as well.
 In the Large-Cap category Nippon India Tax Saver Fund is more feasible as it
has higher Sharpe ratio compared to other schemes, higher Treynor ratio and
Jensen’s alpha is better than other schemes and the expense ratio is also less.
 In the Mid-Cap category SBI Magnum Mid-Cap Fund is more feasible as it has
a fair Sharpe ratio, lesser Standard deviation with better Alpha an Treynor ratio
with lowest expense ratio as compared to other schemes in the category.
 In the Balanced Advantage category ICICI Prudential Balanced Advantage Fund
is more feasible as it has highest Sharpe Ratio, low Standard deviation and
lowest Expense ratio with comparison to other schemes in this category.

Based on returns:

 ELSS category:
o 1 Year- SBI Long Term Equity Fund ELSS
o 3 Year- SBI Long Term Equity Fund ELSS
o 5 Year- SBI Long Term Equity Fund ELSS
 Large-Cap category:
o 1 Year- Nippon India Large-Cap Fund
o 3 Year- Nippon India Large-Cap Fund
o 5 Year- ICICI prudential Bluechip Fund
 Mid-Cap category:
o 1 Year- Nippon India Growth Fund
o 3 Year- Nippon India Growth Fund

36
o 5 Year- Nippon India Growth Fund
 Balanced Advantage category:
o 1 Year- Nippon India Balanced Advantage Fund
o 3 Year- ICICI Prudential Balanced Advantage Fund
o 5 Year- ICICI Prudential Balanced Advantage Fund

Based on the returns we can clearly identify that Nippon India Mutual Fund schemes
provide better returns in various category, after which ICICI Prudential Mutual Fund
schemes provide better returns for a period of over three to five years.

7.2 Portfolio Management services (PMS) at ICICI Prudential AMC:

PMS is a customized service offered to High Net-worth Individuals (HNI) clients. The
service is tailored as per the investor’s return requirements and the ability and
willingness to assume the risk. An Investment Policy Statement (IPS) is drafted by a
PMS to understand the financial position and needs of the client. The portfolio manager
ensures that the return requirements coincide with the risk profile. Before executing the
optimum portfolio, PMS also studies the various constraints such as time horizon, tax
applicability, liquidity, and other unique considerations of the client.

PMS at ICICI Prudential AMC:

 Identifying the right stocks from the right sectors: ICICI Prudential Alternate
solid handpicked stock baskets which are derived from ICICI Prudential AMC’s
in-house research team.
 Tracking the stocks purchased: You can sit back and relax as there is active
tracking of each stock basket by ICICI Prudential AMC’s expert investment
team.
 Taking timely action on the stocks basis stock market conditions: One gets
instant stock basket Buy/Sell alerts via SMS and app notifications along with
detailed rationale. Execution within the app is via a simple 2-step order
placement.

Powered by in-house expert Research Team:

 Invest in a disciplined manner, just like a seasoned market investor.
 Active tracking of each stock basket by our expert investment team.
 Instant basket update alerts and 2-step order placement with detailed rationale
for each stock basket update.

37
 Complete transparency and control. View real-time performance; withdraw fully
or partially at any time.
Premier Baskets and Thematic Stock Baskets:
 Premier baskets aim to create wealth by investing in high-quality structural
growth stocks with consistent compounding returns over the long term.
 Thematic baskets, on the other hand, are meant for the medium term, with an
emphasis on capitalising on select themes or macro trends.

1. Power portfolio: Aims to outperform CNX Nifty 50 index

a. Minimum lump sum investment: INR 1,00,000
b. No. of stocks: 10
c. Risk: Balanced
2. Top picks: Aims to outperform CNX Nifty 50 and Sensex indices
a. Minimum lump sum investment: INR 1,00,000
b. No. of stocks: 12
c. Risk: Balanced
3. Star portfolio: Aims to outperform BSE 200 and CNX Nifty 50 indices
a. Minimum lump sum investment: INR 1,00,000

38
b. No. of stocks: 10
c. Risk: Balanced
4. Emerging stars portfolio: Aims to outperform CNX Nifty Mid-Cap 100 and
CNX Nifty Small-Cap 100s
a. Minimum lump sum investment: INR 1,00,000
b. No. of stocks: 8 to 10
c. Risk: Aggressive
5. MNC picks: Aims to outperform CNX MNC index
a. Minimum lump sum investment: INR 80,000
b. No. of stocks: 5 to 10
c. Risk: Conservative
6. Economic recovery picks: Aims to outperform Nifty 50 / CNX 500 indices
a. Minimum lump sum investment: INR 50,000
b. No. of stocks: 8 to 10
c. Risk: Balanced
7. Export picks: Aims to outperform Nifty 50 index
a. Minimum lump sum investment: INR 50,000
b. No. of stocks: 5 to 10
c. Risk: Aggressive
8. Green model portfolio: Aims to outperform CNX Nifty 100 ESG
a. Minimum lump sum investment: INR 60,000
b. No. of stocks: 8 to 10
c. Risk: Balanced

39
Benefits of i-Invest iPru Application:

 Convenience and Accessibility

1. Provides 24/7 access to mutual fund services, enabling users to
invest, redeem, or manage their portfolios anytime, anywhere.
2. Eliminates the need to visit a branch or deal with paperwork,
saving time and effort.
 User-Friendly Interface
1. The app is designed with a simple interface, making it suitable
for investors; Easy navigation allows users to find schemes, view
portfolios, and make transactions seamlessly.
 Wide Range of Investment Options
1. Offers access to a variety of mutual fund schemes, including
equity, debt, hybrid, and sector-specific funds.
 Portfolio Management
1. Enables real-time tracking of investment performance.
2. Allow users to view detailed insights into their portfolio, such as
returns, allocation, and historical trends.
 Seamless Transactions
1. Supports quick and convenient investing, redemption, and
switching between schemes.
2. Offers features like One-Click Investing, SIP (Systematic
Investment Plan), and lumpsum investments.
 Insights and Tools
1. Provides calculators and planning tools for goal-based
investments, retirement planning, and tax-saving strategies.
 Customer Support
1. Integrates chatbots and live support to address user queries and
provide assistance instantly.
 Cost-Effective
1. Offers a direct plan option with lower expense ratios for higher
returns over long time.
40
CHAPTER 8:

CONCLUSION
Mutual funds are a great instrument to begin investment with, investors having near to
no knowledge about investment can also use Mutual funds as a source to channelize
their savings and earn returns out of it. Mutual funds help mitigate risk associated with
the investment. This project helps to get an in-depth understanding of the Mutual fund
industry in India and how anyone should plan their investment into this industry, based
on the risk appetite, the amount of investment planned, timeframe of investment, type
of return expectations, type of fund to invest in, and some more factors which affect the
selection of the right Mutual fund scheme at right time. The comparative analysis done
helps us understand the offerings of different AMCs in each category which were taken
into consideration and rate them according to their financial aspects and returns
provided to the investors. The PMS Service at ICICI Prudential AMC helps get an
understanding that professionally managed funds can help on to plan investment with
more expertise and knowledge applied in order to invest into the right stock and harvest
accordingly.

41
CHAPTER 9:

LIMITATIONS
 The research was done on selected Mutual fund houses.
 The research was done only on selected Mutual fund schemes.
 The analysis was done on the past performance of selected Mutual fund
schemes.
 Secondary data was used to conduct the research and gain understanding of the
Mutual fund industry and thus the data may vary from source to source.
 The data related to different Mutual fund schemes such as ratios, standard
deviation and returns may vary from source to source.
 The data procured doesn’t take into consideration the changes that may happen
in the market as well as the Mutual fund industry and thus the schemes on which
the research was conducted.

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REFERENCES:
 https://www.icicidirect.com/ilearn/Mutual-fund/articles/Mutual-funds-in-india
 https://www.franklintempletonindia.com/investor-education/new-to-Mutual-
funds/article/beginners-guide-chapter10/types-of-Mutual-fund-in-india
 https://www.amfiindia.com/indian-Mutual
 https://economictimes.indiatimes.com/mf/analysis/Mutual-fund-houses-
launches-36-active-30-passive-nfos-in-
2023/articleshow/102303745.cms?from=mdr
 https://www.ibef.org/industry/financial-services-india
 https://www.okbank.co.id/en/information/news/5-factors-affecting-investment-
success-or-failure
 https://www.chittorgarh.com/faq_pg/what-is-ICICI-AMC-company/2118/
 https://groww.in/Mutual-funds/compare
 https://www.indeed.com/career-advice/career-development/what-is-a-data-
table#:~:text=A%20data%20table%20is%20a,in%20the%20table%20more%20
clearly.
 https://tavaga.com/blog/portfolio-management-services/

Bibliography
Guruprasad, M., Singh, L., & Singh, A. (2019, February). Mutual Fund Industry in
India An analytical study of Various Brands and Schemes - Study on Financial
Performance and Customer preference. 19.

Rokade, E. (2021, March). A Study on the Growth of Mutual funds in India. 9.

Verma, S., & Nema, D. (2022, June). Mutual fund industry in India -An empirical
analysis. NLDISMR Innovision Journal of Management Research, 12

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ABBREVIATIONS
 AMC: Asset Management Company
 MF: Mutual Fund
 NAV: Net Asset Value
 SIP: Systematic Investment Plan
 AUM: Asset Under Management
 CAGR: Compound Annual Growth Rate
 RBI: Reserve Bank of India
 SBI: State Bank of India
 CEO: Chief Executive Officer
 AMFI: Association of Mutual Funds in India
 ETF: Exchange Traded Fund
 HNWI: High Net Worth Individual
 NBFC: Non-Banking Financial company
 TER: Total Expense Ratio
 NFO: New Fund Offer
 GDP: Gross Domestic Product
 BSE: Bombay Stock Exchange
 ELSS: Equity Linked Saving Schemes
 PMS: Portfolio Management Service
 UTI: Unit Trust of India.

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