Shikha Report

CHAPTER-1INTRODUCTION

INTRODUCTION ICICI BANK LTD.

ICICI Bank is India's second-largest bank with total assets of about Rs.146,214crore at December 31, 2005 and profit after tax of Rs. 1,391 crore in the nine months ended December 31, 2005.ICICI Bank has a network of about 505 branches and extension counters and about 1,850 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management.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.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.ICICI Prudential Life Insurance CompanyICICI Prudential Life Insurance Company is a joint venture between ICICI Bank, a premier financial powerhouse and Prudentialplc, a leading international financial services group headquartered in the United Kingdom. ICICI Prudential was amongst the first private sector insurance companies to begin operations in December 2000 after receiving approval from Insurance Regulatory Development Authority (IRDA).ICICI Prudential's equity base stands at Rs. 9.25 billion with ICICI Bank and Prudential plc holding 74% and 26% stake respectively. In the period April-December 2004, the company garnered Rs 8.6 billion of new business premium for a total sum assured of over Rs 73.6 billion and wrote nearly 345,000 policies. The company has a network of over 50,000 advisors; as well as 7 banc assurance tie-ups. Today, ICICI Prudential has emerged as the No. 1 private life insurer in the country, with a wide range of flexible products that meet the needs of the Indian customer at every step in lifeICICI Lombard General Insurance CompanyICICI Lombard General Insurance Company Limited is a 74:26 joint venture between ICICI Bank Limited and the US-based $ 26 billion Fairfax Financial Holdings Limited. ICICI Bank is India's second largest bank, while Fairfax Financial Holdings is a diversified financial corporate engaged in general insurance, reinsurance, insurance claims management and investment management. Lombard Canada Ltd., a group company of Fairfax Financial Holdings Limited, is one of Canada's oldest property and casualty insurers.ICICI Lombard General Insurance Company received regulatory approvals to commence general insurance business in August 2001.BOARD MEMBERS Mr. N. Vaghul, Chairman Mr. Uday M. Chitale Mr. P.C. Ghosh Mr. L. N. Mittal Mr. AnupamPuri Mr. VinodRai Mr. Somesh R. Sathe Mr. P.M. Sinha Mr. M.K. Sharma Prof. Marti G. Subrahmanyam Mr. V. PremWatsa Mr. K.V. Kamath, Managing Director & Chief Executive Officer Ms. Lalita D. Gupte, Joint Managing Director Ms. KalpanaMorparia, Deputy Managing Director Ms. ChandaKochhar, Executive Director Dr. NachiketMor, Executive DirectoSERVICES PROVIDED BY ICICI BANK

1. DEPOSITS

SAVING BANK SPECIAL SAVING ACCOUNT SENIOR CITIZEN SERVICE ROAMING CURRENT ACCOUNT PRIVATE BANK SALARY ACCOUNT WOMENS ACCOUNT FIXED DEPOSITS EASY FD RECURRING DEPOSIT YOUNG STAR EEFC ACCOUNT RFC ACCOUT2. LOAN

HOME LOAN CAR LOAN PERSONAL LOAN TWO WHEELERS LOAN LOAN AGAINST SECURITY FARM EQUIPMENTS LOAN COMMERCIAL VEHICLE LOAN CONSTRUCTION EQUIPMENTS LOAN OFFICE EQUIPMENTS LOAN MEDICAL EQUIPMENTS LOAN3. INVESTMENTS

ICICI BANK BONDS MUTUAL FUNDS PURE GOLD INITIAL PUBLIC OFFER GOVERNMENT OF INDIA BOND4. DEMAT

5. CARDS

CREDIT CARD DEBIT CARD TRAVEL CARD6. YOUNG STAR LOGIN

7. MOBILE BANKING

8. ONLINE SERVICES

BILL PAY SHOPPING TICKETING CHARITY SHARE TRADING

CHAPTER-2COMPANY PROFILE

COMPANY PROFILE

ICICI Lombard General Insurance Company Limited. (ICICI Lombard) is a 74:26 venture between ICICI Bank, India's largest private sector bank and Lombard, one of the oldest property and casualty insurance companies in Canada. The company received regulatory approvals to commence general insurance business in August 2001.Mr.SandeepBakhshi, Managing Director, ICICI Lombard, is responsible for the non-life insurance business of ICICI Limited. He had joined ICICI in the year 1986, as an officer in the Operations Department in the Northern Zonal Office at Delhi. His job responsibilities included business development, project appraisals, project monitoring and business restructuring.

He was appointed Senior Vice President in 1996 and apart from project finance was also given the charge of the Risk Management for the Northern Zonal Office

FOLLOWING ARE THE PRODUCTS OFFERED BY ICICI LOMBARD:

ICICI Bank Pure GoldGold has been traditionally the most favoured form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country.

ICICI Bank with its Pure Gold offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components Reliability and Convenience.

Reliability:24 Carat ICICI Bank Pure Gold is imported from Switzerland. This Gold carries a 99.99% Assay Certification, signifying highest level of purity, as per international standardsConvenience:ICICI Bank Pure Gold is competitively priced based on daily prices in the international bullion market. Currently, gold is available in 8 gram and 5 gram categories, subsequently other denominations will also be introduced

ICICI Bank through its ICICI Bank Pure Gold offering wants you to get value for money. ICICI Bank is amongst the first banks in the country to have started perennial retailing of Gold through its branches. The retailing of gold is done in the form of 5 and 8 gm Gold Coins that are imported from Switzerland. The Gold coins come with an ASSAY Certification, indicating the highest quality of gold at 99.99% purity.

Gold makes a great gift idea for valued relationships. . Gift your important relationships ICICI Bank Pure Gold as a manifestation of your commitment to the relationship and its qualitySome of the occasions when 'ICICI Bank Pure Gold' can be gifted are: 5 yrs. of service by an employee. As an Award for good performance. Marriage of an employee. Great gift idea on Festivals like Diwali, Christmas, Id, Durga Puja etc. Bonus for employees. Dealers for achieving Targets. Some Interesting Aspects About ICICI Bank Pure Gold: It is available in Tamper proof packaging that can be customized as per your requirement. It is accompanied by 'Assay Certification' indicating the highest level of purity as per international standards. It is available throughout the year. You can buy it through debit instructions to your accountICICI Bank Pure Gold is of 24 Karat, 99.99% purity gold.Gold are sold in the form of round shaped coins.Gold are sold in 2 weights - 5gm and 8 gm.

MUTUAL FUNDS DEALT WITH DURING THE SIP

FRANKLIN INDIA PRIMA FUNDFund Name Franklin Templeton Mutual Fund

AMC Templeton Asset Management India Private Ltd Type Open-End Fund manager Mr. R SukumarOptions Franklin Pharma-DBackground The scheme seeks to provide long-term capital appreciation by investing primarily in Pharmaceutical stocks, biotechnology and agrochemicals with high profit potential. NAV:29.53 (As on 28-Apr-2006) Face Value Rs.10.00 Current Corpus (Rs Lakh) 9,873.91 Entry Price (Rs) 30.19 Exit Price (Rs) 29.53 Entry Load (%) 2.25 Primary Aim Equity Secondary Aim PharmaInception Date 31-Mar-1999

Tax Benefits u/s... Section 54EA(Long-term Capital Gains 54EA)Section 54EB(Long-term Capital Gains 54EB)

FRANKLIN INDIA BLUECHIP FUNDFund Name Franklin Templeton Mutual Fund

AMC Templeton Asset Management India Private Ltd Type Open-End Fund manager Mr. R SukumarOptions FraklinBackground The scheme seeks to provide long-term capital appreciation by investing primarily in Blue chips stocks, Larege caps with high profit potential. NAV:29.53 (As on 28-Apr-2006) Face Value Rs.10.00 Current Corpus (Rs Lakh) 9,745.91 Entry Price (Rs) 30.19 Exit Price (Rs) 29.53 Entry Load (%) 2.25 Primary Aim Equity Secondary Aim BluechipHDFC TAX PLAN FUNDFundHDFC Mutual Funds

AMCHDFC Asset Management Company Ltd

CategoryEquity-Tax Planning

TypeOpenEnded

ObjectiveThese funds diversify their portfolio evenly across stocks and industry sectors but they carry a lock-in of 3 years and entail tax rebate under Section 88 for investment uptoRs. 10000.

Launched31/03/1996

Fund MgrDhawal Mehtasince10/01/2005

AssetsRs.4,625.79mn as on31/03/2006

Quick Statistics

latest navprevious nav% changeentry load*exit load*minimum initial investmentminimum subsequent investment

Rs.145.6Rs.145.72-0.08%2.25%-Rs.500Rs.500

Returns as on28/04/2006

Absolute Returns

6 months1 year3 years*5 years*since launch on 31/03/1996*

57.48%103.29%93.52%55.99%46.35%

*Annualised

Returns Relative to S&PCNX Nifty Total Return

6 months1 year3 years*5 years*

6%22.57%36.58%-

Asset Allocation as on 31/03/2006

asset typepercentage

Equity92.43%

Debt0.00%

Others7.57%

Top Sectors as on 31/03/2006

sectorpercentage of total assets

Basic/Engineering21.01%

Automobile18.29%

Metals & Metal Products15.70%

Technology9.61%

Chemicals5.90%

Prudential ICICI Tax Plan - GrowthFundPrudential ICICI Mutual Fund

AMCPrudential ICICI Asset Mangement Company Ltd


TypeOpenEnded


Launched09/08/1999

Fund MgrSankaranNarensince01/10/2005


Quick Statistics

latest navprevious nav% changeentry load*Exit load*minimum initial investmentminimum subsequent investment

Rs.99.9Rs.99.91-0.01%2.25%-Rs.500Rs.500


Absolute Returns


57.64%103.87%101.07%57.62%40.4%


6.16%23.15%44.13%-

Portfolio



Equity90.96%

Debt1.49%

Others7.55%


Sectorpercentage of total assets

Diversified15.20%

Chemicals12.39%

Textiles11.00%

Health Care10.84%

Automobile9.48%

Prudential ICICI Dynamic Plan-GrowthFundPrudential ICICI Mutual Fund

AMCPrudential ICICI Asset Mangement Company Ltd

CategoryEquity-Diversified

TypeOpenEnded

ObjectiveThese funds diversify their portfolio evenly across stocks and industry sectors.

Launched18/10/2002

Fund MgrAnil Sarinsince01/10/2005


Quick Statistics


Rs.59.64Rs.59.420.37%2.25%-Rs.5000Rs.500


Absolute Returns


70.09%119.4%76.41%-64.29%

Returns Relative to S&P CNX Nifty


18.61%38.68%20.72%-

Portfolio



Equity94.19%

Debt3.83%

Others1.98%


sectorpercentage of total assets

Diversified22.18%

Technology19.55%

Consumer Non-Durable9.62%

Others7.31%

Metals & Metal Products7.15%

SBI MagnumTaxgainFundSBI Mutual Fund

AMCSBI Funds Management Ltd


TypeOpenEnded


Launched31/03/1993

Fund MgrGopalAgrawalsince03/03/2006


Quick Statistics


Rs.49.81Rs.49.81-2.25%-Rs.500-


Absolute Returns


50.21%100.49%116.37%55.08%22.31%

Returns Relative to BSE Sensex


-4%11.89%57.16%-

Portfolio



Equity81.03%

Debt6.19%

Others12.79%



Technology15.59%

Construction13.61%


Diversified8.00%


SundaramTaxsaver-Growth

FundSundaram Mutual Fund

AMCSundaram Asset Management Company Ltd


TypeOpenEnded


Launched17/11/1999

Fund MgrN Prasadsince01/02/2006

AssetsRs.572.85mn as on31/03/2006

Quick Statistics

Latest navprevious nav% changeentry load*exit load*minimum initial investmentminimum subsequent investment

Rs.27.41Rs.27.40.04%2.25%-Rs.500Rs.500


Absolute Returns


60.48%97.89%82.81%47.44%29.57%

Returns Relative to S&PCNX Nifty Total Return


9%17.17%25.87%-

Portfolio


Asset typepercentage

Equity94.75%

Debt0.00%

Others5.25%




Diversified10.91%

Services10.55%

Technology9.47%


CHAPTER-3OBJECTIVES OF STUDY OBJECTIVES OF STUDY

To overview and understand the procedure & financial and accounts department of ICICI Bank and suggest recommendations to make the existing system more effective.

To analyse the financial statements of ICICI Bank To determine changes in financial conditions of business. To spot out strengths and weakness of company. To give suggestions for the improvement of existing system so that it could be implemented effectively with minimum cost and time. To analyse the balance-sheet of ICICI Bank by making comparative balance sheet of 2011 and 2012. To spot out opportunities of ICICI Bank by calculating trend values of netprofits.

CHAPTER-4LITERATURE REVIEW

LITERATURE REVIEW

A portfolio that is right for you at one point in your life may not be quite so suitable a few years later. Your investments need to adapt to changes in your circumstances, such as getting married, having children or starting a business. Its also a good idea to check that each of the funds in your portfolio is living up to your expectations. Talking to an investment advisor could help one decide whether you need to switch money between funds.GETTING THE RIGHT MIXFor the greatest long term growth potential one could simply invest all ones money in equity mutual funds, right from the start of ones investing period to the end. But, of course this would be a high risk strategy. The markets could dip just before you need the money.Thats why one needs to think about changing, modifying and reviewing ones portfolio from time to time. One may want to aim for strong growth in the early years, and then, as the years go by, lock in any gains one has made and move into lower risk investments, such as bonds. As one gets closer to needing ones money, lower risk bond and cash investments could be given more emphasis

What is the P/E Ratio?P/E is short for the ratio of a company's share price to its per-share earnings. As the name implies, to calculate the P/E you simply take the current stock price of a company and divide by its earnings per share (EPS):

P/E Ratio =Market Value per Share

Earnings per Share (EPS)

Companies that aren't profitable, and consequently have a negative EPS, pose a challenge when it comes to calculating their P/E. Opinions vary on how to deal with this. Some say there is a negative P/E others give a P/E of 0, while most just say the P/E doesn't exist. Historically, the average P/E ratio in the market has been around 15-25. This fluctuates significantly depending on economic conditions at the time. The P/E can also vary widely between different companies and industries.

Don't Buy/Short Just Because of the P/E Ratio

What goes up ... well, sometimes it stays up for an awfully long time.

A common mistake among beginning investors is the short selling of stocks because they have a high P/E ratio. If you aren't familiar with short selling, it's an investing technique by which an investor can make money when a shorted security falls in value. We have a whole tutorial on short selling for you to read at your leisure.

Security analysis requires a great deal more than understanding a few ratios. While the P/E is one part of the puzzle, it's definitely not a crystal ball.

Using the P/E Ratio

Theoretically, a stock's P/E tells us how much investors are willing to pay per rupee of earnings. For this reason it's also called the "multiple" of a stock. In other words, a P/E ratio of 20 suggests that investors in the stock are willing to pay Rs. 20 for every Re. 1 of earnings that the company generates. However, this is a far too simplistic way of viewing the P/E because it fails to take into account the company's growth prospects.

Growth of Earnings

Although the EPS figure in the P/E is usually based on earnings from the last four quarters, the P/E is more than a measure of a company's past performance. It also takes into account market expectations for the growth of a company. Remember, stock prices reflect what investors think a company will be worth. Future growth is already accounted for in the stock price. As a result, a better way of interpreting the P/E ratio is as a reflection of the market's optimism concerning a company's growth prospects. If a company has a P/E higher than the market or industry average, this means the market is expecting big things over the next few months or years. A company with a high P/E ratio will eventually have to live up to the high rating by substantially increasing its earnings, or the stock price will need to drop.Cheap or Expensive?The P/E ratio is a much better indicator of the value of a stock than the market price alone. For example, all things being equal, a Rs.10/- stock with a P/E of 75 is much more "expensive" than a Rs.100/- stock with a P/E of 20. That being said, there are limits to this form of analysis -- you can't just compare the P/Es of two different companies to determine which is a better value.It's difficult to determine whether a particular P/E is high or low without taking into account two main factors:a. Company growth ratesHow fast has the company been growing in the past, and are these rates expected to increase or at least continue into the future? Something isn't right if a company has only grown at 5% in the past and still has a stratospheric P/E. If projected growth rates don't justify the P/E, then a stock might be overpriced. In this situation, all you have to do is calculate the P/E using projected EPS.b. IndustryIt is only useful to compare companies if they are in the same industry. For example, utilities typically have low multiples because they are low growth, stable industries. In contrast, the technology industry is characterized by phenomenal growth rates and constant change. Comparing a tech to a utility is useless. You should only compare high growth companies to others in the same industry, or to the industry average.

CHAPTER-5RESEARCH METHODOLOGY

RESEARCH METHODOLOGY

Along with Deposit products and Loan offerings, ICICI Bank assists you to manage your finances by providing various investment options ranging from ICICI Bank Tax Saving Bonds to Equity Investments through Initial Public Offers and Investment in Pure Gold. ICICI Bank facilitates following investment products: ICICI Bank Tax Saving Bonds Government of India Bonds Investment in Mutual Funds Initial Public Offers by Corporate Investment in "Pure Gold"ICICI BANK BONDSBonds are similar to Fixed Deposits. Like fixed deposit receipts, Bonds are normally issued by a bank, a financial institution or a company, for a fixed period. A specified rate of interest is payable to the investor at regular intervals. However, unlike Bonds, Fixed Deposits are not transferable. Also, while Bonds may be secured or unsecured, Fixed Deposits are always unsecured.GOI BONDS8% Savings Bonds (Taxable), 2003 Low risk. Reasonable investment tenure. Nomination facility available. Cannot be traded in secondary market. Interest income taxable.INVESTMENT IN IPO'SCustomer can invest in IPOs through ICICI Bank which offers hassle-free & convenient of investing in equities. ICICI Bank helps in gathering in-depth analyses of new IPOs issues (Initial Public Offerings) which are about to hit the market. ICICI BANK PURE GOLDGold has been traditionally the most favored form of investment for Indians. In fact, India, even today is amongst the highest consumers of Gold in the world. However, the Gold market remains largely unorganized with reliability and convenience remaining the key issues for gold buyers in the country.

ICICI Bank with its Pure Gold offer attempts to bridge the gap between the need of the customers for buying gold and availability of an organized avenue to satisfy that need, by taking care of the two key components Reliability and Convenience.INVESTMENT IN IPO'SInvestors can invest in IPOs through ICICI Bank which offers hassle-free & convenient investing in equities. ICICI Bank helps in gathering in-depth analysis of new IPOs issues (Initial Public Offerings) which are about to hit the market.TRADITIONAL INVESTMENT OPTIONSICICI Bank offers wide variety of Deposit Products to suit Investors requirements. Coupled with convenience of networked branches with over 1800 ATMs and facility of E-channels like Internet and Mobile Banking, ICICI Bank brings banking at Customers doorstep. There are three Options available to the investors. Fixed Deposits Savings Account Recurring DepositFixed Deposits

Safety, Flexibility, Liquidity and Returns!!!!A combination of unbeatable features of the Fixed Deposit from ICICI Bank.Fixed Deposit Wide range of tenures Choice of investment plans Partial withdrawal permitted Safe custody of fixed deposit receipts Auto renewal possible Loan facility available Easy Deposit Free Debit/ATM card No need to open a Savings account. Options of Easy Withdrawal and Easy Loan Wide range of tenures Auto renewal possible Loan facility availableBenefits of Fixed Deposits A wide range of tenures, ranging from 15 days to 10 years, to suit your investment plan. Partial withdrawal is permitted in units of Rs 1,000. The balance amount earns the original rate of interest. Safe custody of your fixed deposit receipts. Auto renewal is provided. Loan facility is available upto 90% of principal and accrued interest. Choice of two investment plans: Traditional or Reinvestment.Savings AccountICICI Bank offers Savings Account with a host of convenient features and banking channels to transact through. Savings Account Debit-cum-ATM card Auto Invest Account Internet Banking Phone Banking Anywhere Banking Standing instructions Nomination facility Doorstep service Special Savings Account Comprehensive Banking Solutions with added features Anywhere Banking Ideal for tax-exempt entities Internet Banking Features The ICICI Bank Ncash debit card is a debit-cum-ATM card providing you with the convenience of acceptance at merchant establishments and cash withdrawals at ATMs. Auto Invest Account Internet Banking is offered free of cost. Anywhere Banking - This facility entitles the account holder to withdraw or deposit cash upto a limit of Rs.50,000 across all ICICI Bank branches. You can give us various types of standing instructions like transferring to fixed deposit accounts at regular intervals. An average quarterly balance of Rs 5,000 only. Nomination facility is available. Interest is payable half-yearly. Senior Citizen ServicesICICI Bank offers an ideal Banking Service for those who are 60 years and above. The Senior Citizen Services from ICICI Bank has several advantages that are tailored to bring convenience.Senior Citizen Services Higher Interest Rates Special Demand Loans against deposit Free collection of outstation cheques drawn on our locations Debit-cum-ATM card Auto Invest Account Internet Banking Phone Banking Anywhere Banking Standing instructions Nomination facility Young StarsICICI Bank helps children learn the value of finances and money management at an early age. Banking is a serious business and ICICI Bank aims to teach the young crowd how to manage their personal finances. Recurring DepositsWhen expenses are high, one might not be having adequate funds to make big investments. Through ICICI Bank Recurring Deposit one can invest small amounts of money every month that ends up with a large saving on maturity. So you enjoy twin advantages- affordability and higher earnings.Recurring Deposit Encourages savings High interest rates of interest Loans against deposits available Non-applicability of Tax Deduction at Source (TDS) Encourages savings without stress on your finances. High rates of interest (identical to the fixed deposit rates). Non-applicability of Tax Deduction at Source (TDS). Mutual Funds:

A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital apperceptions realized are shared by its unit holders in proportion to the numbers of units owned by them .Thus, Mutual fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified ,professionally managed basket of securities at a relatively low cost.

There are two basic types of mutual funds. "Open-ended" or "Open" mutualfunds are the most common type of mutual funds. Investors may purchase units from the fund sponsor or redeem units at the valuation promised in the fund documents, usually on a daily basis. "Closed-ended" or "Closed" mutual funds are traded as financial securities, once they are issued, and holders must sell their units on the stock market to receive their funds back. Open Mutual FundsOpen mutual funds are established by a fund sponsor, usually a mutual fund company. The sponsor has promised in the documents of the fund that it will issue and refund or units of the fund at the fund unit value. This type of fund is valued by the fund company or an outside valuation agent. Open mutual funds keep some portion of their assets in short-term and money market securities to provide available funds for redemptions. A large portion of most open mutual funds is invested in highly "liquid securities", which means that the fund can raise money by selling securities at prices very close to those used for valuations.Closed Mutual FundsClosed mutual funds are really financial securities that are traded on the stock market. A sponsor, a mutual fund company or investment dealer, will create a "trust fund" that raises funds through an underwriting to be invested in a specific fashion. The fund retains an investment manager to manage the fund assets in the manner specified. Once underwritten, closed mutual funds trade on stock exchanges like stocks or bonds. Aggressive Growth Funds

Aggressive growth funds aim to maximize capital gains (buy low and sell high). These funds may leverage their assets by borrowing funds, and may trade in stock options.These funds often have low, current yields. Because they don't invest for dividend income, and often have little cash in interest-bearing accounts, short-term yield is not optimized.Growth Funds

Growth funds are similar to aggressive growth funds, but do not usually trade stock options or borrow money with which to trade. Most growth funds surpass the S&P 500 during bull markets, but do a little worse than average during bear markets.Just as in aggressive growth funds, growth funds are not aimed at the short-term market timer. The aggressive investor may find that they are an ideal complement for aggressive growth funds, as the differing investment strategies used by the two types of funds can produce maximum gains.The volatility of these funds makes them inappropriate as the sole investment vehicle for risk-averse investors.Examples:1) Reliance Growth Fund2) HDFC Growth Fund3) Prudential ICICI Growth FundGrowth-Income FundsGrowth-income funds are specialists in blue chip stocks. These funds invest in utilities, Dow industrials, and other seasoned stocks. They work to maximize dividend income while also generating capital gains. These funds are suitable as a substitute for conservative investment in the stock market.Income FundsIncome funds focus on dividend income, while also enjoying the capital gains that usually accompany investment in common and preferred stocks. These funds are particularly favored by conservative investors.Examples:Tata Income FundBirla Income Plus FundPrudential ICICI Income Fund.International FundsInternational funds hold primarily foreign securities. There are two elements of risk in this investment: the normal economic risk of holding stocks; as well as the currency risk associated with repatriating money after taking the investment profits. These funds are an vital aspect of many portfolios, but any individual fund may prove too volatile for the average investor as the sole investment.

Asset Allocation FundsAsset allocation funds don't invest in just stocks. Instead, they focus on stocks, bonds, gold, real estate, and money market funds. This portfolio approach decreases the reliance on any one segment of the marketplace, easing any declines. A plus factor is limited by this strategy as well.Precious Metal FundsPrecious metal funds invest in gold, silver, and platinum. Gold and silver often move in the opposite direction from the stock market, and thus these funds can provide a hedge against investments in commonstocks.Bond FundsBond funds invest in corporate and government bonds. A common misunderstanding among investors is that the return on a bond fund is similar to the returns of the bonds purchased. One might expect that a fund that owns primarily 8 percent-yielding bonds would return 8 percent to investors. In fact, the yield from the fund is based primarily on the trading of bonds, which are extraordinarily sensitive to interest rates.

Mutual Funds can also be classified into three categories viz. Equity Funds, Debt Funds and Balanced FundsEQUITY FUNDSThese funds invest a major part of their corpus in equities. The composition of the fund may vary from scheme to scheme and the fund managers outlook on various scrips. The Equity Funds are sub-classified depending upon their investment objective, as follows:Diversified Equity Funds Mid-Cap Funds Sector Specific Funds Tax Savings Funds (ELSS) Equity investments are meant for a longer time horizon. Equity funds rank high on the risk-return matrix.DEBT FUNDSThese Funds invest a major portion of their corpus in debt papers. Government authorities, private companies, banks and financial institutions are some of the major issuers of debt papers. By investing in debt instruments, these funds ensure low risk and provide stable income to the investors. Debt funds are further classified as:

Gilt Funds: Invest their corpus in securities issued by Government, popularly known as GoI debt papers. These Funds carry zero Default risk but are associated with Interest Rate risk.These schemes are safer as they invest in papers backed by Government. Examples:Birla Gilt Fund,Prudential ICICI Gilt Investment.

Income Funds: Invest a major portion into various debt instruments such as bonds, corporate debentures and Government securities.

MIPs: Invests around 80% of their total corpus in debt instruments while the rest of the portion is invested in equities. It gets benefit of both equity and debt market. These scheme ranks slightly high on the risk-return matrix when compared with other debt schemes.

Short Term Plans (STPs): Meant for investors with an investment horizon of 3-6 months. These funds primarily invest in short term papers like Certificate of Deposits (CDs) and Commercial Papers (CPs). Some portion of the corpus is also invested in corporate debentures.

Liquid Funds: Also known as Money Market Schemes, These funds are meant to provide easy liquidity and preservation of capital. These schemes invest in short-term instruments like Treasury Bills, inter-bank call money market, CPs and CDs. These funds are meant for short-term cash management of corporate houses and are meant for an investment horizon of 1day to 3 months. These schemes rank low on risk-return matrix and are considered to be the safest amongst all categories of mutual funds. Examples: Birla Cash Fund, HSBC Cash FundBALANCED FUNDSThese funds, as the name suggests, are a mix of both equity and debt funds. They invest in both equities and fixed income securities, which are in line with pre-defined investment objective of the scheme. These schemes aim to provide investors with the best of both the worlds. Equity part provides growth and the debt part provides stability in returns.OPTIONS AVAILABLE TO INVESTORSEach plan of every mutual fund has three options Growth, Dividend and dividend reinvestment. Separate NAV are calculated for each scheme.

Dividend Option :-

Under the dividend plan dividend are usually declared on quarterly or annual basis. Mutual fund reserves the right to change the frequency of dividend declared.

Dividend reinvestment option :-Instead of remittances of units through payouts, Units holder may choose to invest the entire dividend in additional units of the scheme at NAV related prices of the next working day after the record date. No sales or entry load is levied on dividend reinvest. Dividend Payout option:-Dividend declared by the fund manager is remitted to the investors and NAV is reduced by that value..Growth OptionUnder this plan returns accrue to the investor in the form of capital appreciation as reflected in the NAV. The scheme will not declare the dividend under the Growth plan and investors who opt for this plan will not receive any income from the scheme. Instead of income earned on their units will remain invested within the scheme and will be reflected in the NAV.Calculation Of NAV

Insurance:Life Insurance is a contract that pledges payment of an amount to the person assured ( or his nominee) on the happening of the event insured against.The contract is valid for payment of the insured amount during The date of maturity Specified dates at periodic intervals, Unfortunate death, if it occurs earlier. The various Insurance schemes dealt at ICICI Bank are:1)Life Time Pension Plan.2)Smart Kid3)Life Time Plan.4)Life Link Super

LIFE TIME PLAN(Tax rebate u/s 80 CCC)ICICI PruLifeTime

Life is about changes. Some you expect - marriage, children, retirementand some you dont - sickness, disability, and death. We, at ICICI Prudential, believe that life should not have to be about fear of the unexpected and that you should be in control so as to overcome them. To be in total control of lifes situations you need total flexibility.

A Policy that meets your changing needs over a LifetimeYour need for insurance is important, to protect your family but you also have an equal need to invest your money for greater returns. How do you strike a balance between these competing needs? Welcome to a new horizon in financial planning. ICICI PruLifeTime gives you the flexibility and control in meeting your protection and investment needs. With this plan you have the freedom to direct your investment to get the benefit of market linked returns and choose the level of protection. And because youre in charge you can accommodate your changing needs. But thats not all. You can do all this too: Vary the amount of insurance protection vis--vis investment while maintaining the same premium Enhance insurance protection by adding Accident & Disability Benefit, Major Surgical Assistance, Critical Illness benefits at a nominal extra premium Top up your investment with a lump sum payment at any time Switch between our choice of plans growth, balanced and income Enjoy tax benefits on the premium paid

Total flexibility, Total control and Total protection All in one go. How do I start?You can open an account with a Minimum Premium of Rs 18,000/- p.a. for annual modeRs 9,000/- per half year for half-yearly modeRs 4,500/- per quarter for quarterly modeRs 1,500/- per month for monthly mode

How does the plan work?You can choose a specified level of protection according to your need. Part of the premium paid will be used to pay for the death benefit and the rest is invested in plan of your choice. Entry into the plan will be based on the Unit Value applicable on the date of policy issue. The amount of premium towards death benefit decreases with the increase in the value of the units.

How do you benefit?Death Benefit: In case of the unfortunate event of death, your near and dear ones are spared an uncertain future. They will be taken care of through our guaranteed death benefit. The nominee/s will receive the death benefit chosen (less any withdrawals) or value of the units, whichever is higher. 1Withdrawal Benefit: There is no maturity date. Anytime after 3 years of commencement (provided you have paid premium for 3 full years) you can make withdrawals through partial or complete surrender of units.2

What are your flexibility options? a. Can you choose the kind of returns you want?Yes, you can. By choosing between our Growth Plan, Income Plan or Balanced Plan.Growth Plan: If high growth is your priority this is the plan for you. You can enjoy long-term capital appreciation from a portfolio that is invested primarily in equity and equity-related securities.Income Plan: If on the other hand your priority is steady returns, you can opt for the Income Plan. Here you can accumulate a steady income at a low risk across a medium to long term period. Balanced Plan: If you prefer a balance of growth and steady returns choose our Balanced Plan. This would ensure that your portfolio is invested in equity and equity-linked securities as well as in fixed income securities.

b. But, what if you want to change your plan later?If at a later stage your financial priorities change, you can switch between the various plan options, and we also let you do this absolutely free once a year.

c. What if you have more investible funds at the year-end than you had calculated?You can top up your investment (minimum Rs 10,000) at any time when you have surplus funds.

d. What if you feel the need to increase your protection?At various stages of your life your liabilities may increase - marriage, children, a new home, children going off for higher studiesICICI PruLifeTime lets you increase your death benefit without any underwriting during special events3 or every third year upto 3 times. This increase is @ 25% of original death benefit or Rs 250,000 whichever is lower each time. You can also increase your protection at other times or for higher levels subjectto underwriting rules.

e. And, what if you want to decrease the death benefits?Over time your liabilities may decrease too, as various loans get paid off, your children become independent and so on. So, if you want to decrease your death benefits you can do that too, at any time.4

f. What if you are unable to pay the premiums?If after at least 3 years payments are made and you are unable to pay the subsequent premiums, the cover under the policy will continue and the premiums towards the life cover and riders will be debited from the unit fund.5

Can you get any add onsWe ensure that you are prepared for any eventuality, with a choice of riders along with the death benefits. Double accident benefit Disability Benefits Critical Illness Surgical Assistance How is unit value calculated? Unit value is calculated bi-weekly on a forward pricing basis every Tuesday and FridayUnit Value =Market/ Fair Value of the relevant Plans Investments plus Current Assets lessCurrent Liabilities and Provisions

Number of Units outstanding under the relevant PlanWhat are the Tax benefits?The premiums paid by you are eligible for tax exemption u/s 88.Any amount paid to you in form of withdrawals or other benefits are completely tax-free u/s 10 (10D).What are the limits or conditions applicable?Age at entryMinimum age at entry: 0 years (completed years)Maximum age at entry: 60 years (completed years)What are the charges? Allocation is 80% of premium in the first year, 92.5% in the second years and 96% from the third year onwards Mortality charge towards death benefit Annual administrative charges of 1.25% per annum of net assets and annual investment charge of 1% per annum of net assets Initial charges of 1% on Top-ups One free switch every year after which a switching fee of 1% of the switching amount will be levied. Any unutilized free switch cannot be carried forward. Note: In case the unit value is inadequate to cover charges, the policy will terminate.Find out if the ICICI PruLifeTime policy suits youFor more queries and detailedinformation,do call our ICICI Pru Advisor. That way, you can learn how best to cover your life!Revision of chargesThe Company reserves the right to change the investment charge at any time with prior approval from the Insurance Regulatory and Development Authority upto a maximum of 1.50% per annum of the net assets for each of the plans. The Company reserves the right to change the annual administrative charge at any time with prior approval from the Insurance Regulatory and Development Authority upto a maximum of 2% per annum of the net assets for each of the plans. The Company reserves the right to modify the Insurance charges and the Processing charge with prospective effect after a giving a notice of three months to the policyholders.

LIFETIME PENSION PLAN(Tax rebate u/s 80 CCC)

Life Time Pension Plan gives the freedom to choose the amount of premium, and invest in market-linked funds, to generate potentially higher returns. On the future retirement date, the accumulated value of the units will be used to purchase an annuity - to provide the investor with regular income for life. Power to choose the protection level: One can choose from either a Zero sum assured or a sum assured, which will be equal to the product of the annual contribution and term. Power to choose the retirement date: We can also take advantage of market movements by choosing a vesting age between 45 - 75 years of age.

Power to increase your investments: Usage of surplus funds to top-up investments during the deferment period.Power to invest in a plan based on your priorities:Choice amongst four funds, based on the investment objective and risk appetite. Facility of switch available between the various fund options,4 times a year.Power to increase / decrease your contribution: Based on your requirements, increase or decrease contribution

CHAPTER-6DATA ANLYSIS

DATA ANLYSIS

Invested sectors of different funds

From the figure it is clear that PRUDENTIAL ICICI DYNAMIC FUND has the maximum no. Of sectors, so this shows that , this fund is more diversified than others so with rising market , this fund gives more returns than other fund.

Beta of different Funds

Beta is the measure of a security's or portfolio's volatility, or systematic risk,in comparison to the market as a whole. So, as the beta is near 1 it is more better fund and that fund price increases with the increasing market. In this case, PRUDENTIAL ICICI TAX PLAN is near to 1. So, with increasing market, this fund will provide more returns to the investors than the other fundsStandard Deviation of Different Funds

Standard Deviation Explains the difference between the expected returns and the actual returns. So more the standard deviation more risky the fund is so in that manner FRAKLIN INDIA PRIMA FUNDIs the best fund within these all funds

R-Square

R-squared describes the level of association between the fund's volatility and market risk, or more specifically, the degree to which a fund's volatility is a result of the day-to-day fluctuations experienced by the overall market. So , R-Square nearer to 1 explains that Beta gives the best result with comparison to that of the market. Sharp Ratio

Now , SHARPE RATIO is given by the equation

So , Sharpe Ratio is indirectly related to the Standard Deviation so fund with low Standard Deviation gives high Sharpe Ratio which in turn gives high portfolio Return. So, in this case FRAKLIN INDIA PRIMA FUND comes as a good fund.

Age Fig. 1Interpretation: This question was asked to know in wich category does the investor fall in:Young (

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